Hailey Corp. pays a constant $9.45 dividend on its stock. The company will maintain this dividend...

Transcribed Image Text:

Hailey Corp. pays a constant $9.45 dividend on its stock. The company will maintain this dividend for 2 the next 13 years and will then cease paying dividends forever. If the required return on this stock is 10.7 percent, what is the current share price? 3 4 Input area: S 6 Current dividend 7 Years until dividend ceases 8 Required return 9 $9.45 13 10.70% 10 (Use cells A6 to B8 from the given information to complete this question.) 11 12 Output area: 13 13 14 Share price 225 15 16 Hailey Corp. pays a constant $9.45 dividend on its stock. The company will maintain this dividend for 2 the next 13 years and will then cease paying dividends forever. If the required return on this stock is 10.7 percent, what is the current share price? 3 4 Input area: S 6 Current dividend 7 Years until dividend ceases 8 Required return 9 $9.45 13 10.70% 10 (Use cells A6 to B8 from the given information to complete this question.) 11 12 Output area: 13 13 14 Share price 225 15 16