Flowers R Us sells flowers and vases successfully all year round. The cost of production, taxes,...
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Flowers R Us sells flowers and vases successfully all year round. The cost of production, taxes, and other expenses are covered by the income stream, and there is enough cash left to pay out dividends to the stockholders. The return that the investors receive from Flowers R Us is 10 percent each year. Just a couple of days ago, Flowers R Us paid a dividend of $10.90 on each stock share. Recently, Flowers R Us announced that it plans to reduce the dollar amount of its annual dividend by 5% each year, and that it will be maintaining this new dividend structure from this point on. If you buy one share of Flowers R Us' stock in today's market, how much should you expect to pay for it? (Increase the decimal places and do not round your intermediate calculations. Only your final answer should be rounded to 2 decimal places, e.g., 32.16.) Current share price Flowers R Us sells flowers and vases successfully all year round. The cost of production, taxes, and other expenses are covered by the income stream, and there is enough cash left to pay out dividends to the stockholders. The return that the investors receive from Flowers R Us is 10 percent each year. Just a couple of days ago, Flowers R Us paid a dividend of $10.90 on each stock share. Recently, Flowers R Us announced that it plans to reduce the dollar amount of its annual dividend by 5% each year, and that it will be maintaining this new dividend structure from this point on. If you buy one share of Flowers R Us' stock in today's market, how much should you expect to pay for it? (Increase the decimal places and do not round your intermediate calculations. Only your final answer should be rounded to 2 decimal places, e.g., 32.16.) Current share price
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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