Question

Pfender Guitars has a current annual cash dividend policy of $4.00. The price of the stock is set to yield an 8% return. What is the price of this stock if the dividend will be paid
a. for 10 years and then a liquidating or final dividend of $25.00?
b. for 15 years and then a liquidating or final dividend of $25.00?
c. for 40 years and then a liquidating or final dividend of $25.00?
d. for 60 years and then a liquidating or final dividend of $25.00?
e. for 100 years and then a liquidating or final dividend of $25.00?
f. forever with no liquidating dividend?



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  • CreatedMay 08, 2014
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