Question: The Book Print Co. is in a downsizing mode. The company will pay the following dividends and will then go out of business after 2029.

The Book Print Co. is in a downsizing mode. The company will pay the following dividends and will then go out of business after 2029.

2025 (D1) 2026 (D2) 2027 (D3) 2028 (D4) 2029 (D5)
$2.00 $1.50 $1.00 $0.50 $0.00

The required rate of return is 15%. What is one share of this stock worth?

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