Question: MMK Cos Normally pays an annual dividend The last such
MMK Cos. Normally pays an annual dividend. The last such dividend paid was $2.25, all future dividends are expected to grow at a rate of 7 percent per year, and the firm faces a required rate of return on equity of 13 percent. If the firm just announced that the next dividend will be an extraordinary dividend of $25 per share that is not expected to affect any other future dividends, what should the stock price be?
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