Visscher currently expects to pay a year-end dividend of $1.99 a share (D 1 =$1.99). Visschers dividend

Question:

Visscher currently expects to pay a year-end dividend of $1.99 a share (D₁ =$1.99). Visscher’s dividend is expected to grow at a constant rate of 5% a year, and its betais 0.8. What is the current price of Visscher’s stock? Hastings Corporation is interested in acquiring Visscher Corporation. Assume that the risk free rate of interest is 4%, and the market risk premium is 5%.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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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