Question

Ms. Manners Catering (MMC) has paid a constant $1.50 per share dividend to its common stockholders for the past 25 years. Beginning with the next dividend, MMC expects to increase the dividend at a constant rate equal to 2 percent per year into perpetuity. Investors require a 12 percent rate of return to purchase MMC’s common stock. What is the market value of MMC’s common stock?



$1.99
Sales2
Views207
Comments0
  • CreatedNovember 24, 2014
  • Files Included
Post your question
5000