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Determine price of the stock if the dividend will be paid

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Pfender Guitars has a current annual cash dividend policy of ?$5.00

Problem 1: The price of the stock is set to yield a return of 7?%. What is the price of this stock if the dividend will be paid

a.  for 9 years and then the comapny repurchases the stock for ?$30

b.  for 13 years and then the comapny repurchases the stock for ?$30

c.  for 40 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 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

Reference no: EM132464968

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