Mature manufacturing firm-what will you pay for share today

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Reference no: EM132041236

Antiques ‘R’ Us is a mature manufacturing firm. The company just paid a dividend of $10.90, but management expects to reduce the payout by 4.5 percent per year, indefinitely.

Required:

If you require a return of 8 percent on this stock, what will you pay for a share today?

Reference no: EM132041236

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