Question #2 Please answer all parts A-F

Pfender Guitars has a current annual cash dividend policy of

$5.00.

The price of the stock is set to yield a return of

12%.

What is the price of this stock if the dividend will be paida.for

9

years and then the comapny repurchases the stock for

$30?

b.for

15

years and then the comapny repurchases the stock for

$30?

c.for

50

years and then the comapny repurchases the stock for

$30?

d.for

60

years and then the comapny repurchases the stock for

$30?

e.for

100

years and then the comapny repurchases the stock for

$30?

f.forever with no repurchase of the stock?

Question content area bottom

Part 1

a.What is the price of this stock if the dividend will be paid for

9

years and then the comapny repurchases the stock for

$30?

$enter your response here

(Round to the nearest cent.)