Problembui corp pays a constant 12 dividend on its stock, Ask an Expert

Accounting

Problem:

Bui Corp. pays a constant $12 dividend on its stock. The company will maintain this dividend for the next nine years and will then cease paying dividends forever.

Required:

Question: If the required return on this stock is 10 percent, what is the current share price?

Note: Show all workings.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91172740

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