Mmk normally pays an annual dividend the last such dividend, Ask an Expert

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MMK normally pays an annual dividend. The last such dividend paid was $2.85, all future dividends are expected to grow at a rate of 8% per year, and the firm faces a required rate of return on equity of 13%. If the firm just announced that the next dividend will be an extraordinary dividend of $25.60 per share that is not expected to affect any other future dividends, what should the stock price be? Please show work.

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Category:- Financial Management
Reference No.:- M91615356

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