Problemapocalyptica corp pays a constant 850 dividend on, Ask an Expert

Accounting

Problem:

Apocalyptica Corp. pays a constant $8.50 dividend on its stock. The company will maintain this dividend for the next 11 years and will then cease paying dividends forever.

Required:

Question: If the required return on this stock is 12 percent, what is the current share price?

Note: Provide support for rationale.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91173667

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