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A company is expecting its sales to decline and has announced that it will be reducing...

A company is expecting its sales to decline and has announced that it will be reducing its annual dividend by 6.75% a year for the next two years. After that, it will maintain a constant dividend of $1.00 a share. Just recently, the company paid a dividend of $2.90 per share. What is this stock worth if you require a 10.75% rate of return?

Question 23 options:

$11.48

$11.78

$12.08

$12.38

$12.69

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Expert Solution

jeff jeffy answered 2 years ago
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