Discontinue paying dividends permanently

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Reference no: EM131063587

The Red Bud Co. pays a constant dividend of $2.30 a share. The company announced today that it will continue to do this for another 2 years after which time they will discontinue paying dividends permanently. What is one share of this stock worth today if the required rate of return is 7.9 percent?

Reference no: EM131063587

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