A company is expecting its sales to decline and has announced that it will be reducing its annual dividend by 5.75% a year for the next two years. After that, it will maintain a constant dividend of $1.00 a share. Just recently, the company paid a dividend of $2.50 per share. What is this stock worth if you require a 9.75% rate of return? 

Answer rating: 100% (QA)

The stocks price can be determined by considering the present value of the future dividends Heres ho... View the full answer