In: Finance
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 |