Question

JBK, Inc., normally pays an annual dividend. The last such dividend paid was $2.50, all future dividends are expected to grow at 5 percent, and the firm faces a required rate of return on equity of 11 percent. If the firm just announced that the next dividend will be an extraordinary dividend of $17 per share that is not expected to affect any other future dividends, what should the stock price be?



$1.99
Sales0
Views75
Comments0
  • CreatedSeptember 23, 2014
  • Files Included
Post your question
5000