Suppose that McKenzie, Inc , just paid a dividend of $5 00 per share The company will continue to pay dividends for the next 25 years, and then go out of business If the discount rate is 11 percent per year, what is the value of the stock for a dividend growth rate of 20 percent 12 percent 6 percen...

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Suppose that McKenzie, Inc., just paid a dividend of $5.00 per share. The company will continue to

Question:

Suppose that McKenzie, Inc., just paid a of $5.00 per share. The company will continue to pay dividends for the next 25 years, and then go out of business. If the is 11 percent per year, what is the value of the stock for a growth rate of 20 percent? 12 percent? 6 percent? 0 percent? – 5 percent?

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...