Company B is expected to pay dividends of $2 every 6 months for the next 6 years.

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Company B is expected to pay dividends of $2 every 6 months for the next 6 years. If the current price of Company B stock is $50, and Company B's equity cost of capital is 10%. What price would you expect the stock to sell for at the end of 6 years? Note: 4 decimal places

Posted Date: May 15, 2024 04:07 AM

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Company B is expected to pay dividends of $2 every 6 months for the next 6 years.

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To solve this problem we need to use the present value PV formula for a finite stream of dividends G... View the full answer

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