What do you expect one share of this stock to be worth

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Reference no: EM131995162

You own stock in Aramark Catering Company. Very recently, the company paid a $2.20 per share annual dividend.

The board of Aramark has just announced its intention today to reduce the firm's future annual dividend distribution by 10 cents per year (not 10%), until it pays a constant $2.00 per share annually, in perpetuity thereafter.

What do you expect one share of this stock to be worth in the markets next year, if the firm's beta presently indicates a required return of 8% for this firm?

Reference no: EM131995162

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