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What is the maximum amount you should pay

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Question - Tuckneneng Manufacturers made two announcements concerning its common stock today. First, the company announced that the next annual dividend will be 1.75 a share. Secondly, all dividends after that will decrease by 1.5 percent annually. What is the maximum amount you should pay to purchase a share of Tuckneneng stock today if you require a 14 percent rate of return?

Reference no: EM132960643

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