Magnetek corp has just paid a dividend of 2 per share and, Ask an Expert

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Magnetek Corp has just paid a dividend of $2 per share and you are now considering purchasing this stock. Analysts have estimated that Magnetek's dividend will grow at 5% per year in perpetuity. Given the riskiness of Magnetek stock, shareholders' required rate of return is 11%. What should you be willing to pay for Magnetek stock?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92170717

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