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What is the present value of the dividend at the end of year

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Use the following information to answer questions 15 and 16.

Siesta Corp. will pay a dividend of $7 per year for the next 10 years, and then stop paying dividends forever. The required rate of the return from stocks in this risk class is 14 percent.

What is the present value of the dividend at the end of year 7?

What should be the market price of the stock at present?

Reference no: EM131697180

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