Dividend will be an extraordinary dividend

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MMK Cos. normally pays an annual dividend. The last such dividend paid was $2.05, all future dividends are expected to grow at a rate of 8 percent per year, and the firm faces a required rate of return on equity of 13 percent. If the firm just announced that the next dividend will be an extraordinary dividend of $24.80 per share that is not expected to affect any other future dividends, what should the stock price be?

Stock price $

Reference no: EM13951831

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