All dividends after that will decrease by 1.5 percent, Ask an Expert

Management Studies

Q. Sessler Manufactures made two announcements concerning its common stock today. First the industry announced that the next annual dividend will be $1.75 a share. Secondly, all dividends after that will decrease by 1.5 percent annually. Illustrate what is the maximum amount you should pay to purchase a share of this stock today it you require a 14 percent rate of return?

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M9378995

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