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Problem:

Beaksley, Inc. is a very cyclical type of business which is reflected in its dividend policy. The firm pays a $2.00 a share dividend every other year. The last dividend was paid last year. Five years from now, the company is repurchasing all of the outstanding shares at a price of $50 a share.

Requirement:

Question: At an 8% rate of return, what is this stock worth today?

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Category:- Basic Finance
Reference No.:- M91174382

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