Larch Foods Inc.'s current dividend is $4.00. Dividends are expected to decline by 4 percent per year

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Larch Foods Inc.'s current dividend is $4.00. Dividends are expected to decline by 4 percent per year for the next three years, and then remain constant thereafter. The required rate of return for this type of company is 15 percent. What is the current stock price for Larch Foods?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Introduction To Corporate Finance

ISBN: 9781118300763

3rd Edition

Authors: Laurence Booth, Sean Cleary

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