Problemmegadebt corp just issued a dividend of 085 the firm, Ask an Expert

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Problem:

MegaDebt Corp. just issued a dividend of $0.85. The firm pays quarterly dividends. The dividends are expected to grow at 0.2 percent each quarter. The shareholders ask for a return of 5.25 percent each year.

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Question: What is the fair price of MegaDebt stock?

Note: Explain the solution in detail.

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Category:- Basic Finance
Reference No.:- M91174323

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