Company has been hit hard due to increase competition

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The textbook Production company has been hit hard due to increase competition. The company analysts predict that earnings ( and dividends) will decline ( negative growth) at the rate of 5 percent annually forever. Assume that the require rate of return for stock is 11 percent and the most recent dividend paid was $ 2.00 per share (Do). What is the price of the company stock ?

Reference no: EM131313125

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