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What will you pay for a share today

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Macon Co. is a manufacturing firm. The company just paid a $2.4 dividend, but management expects to reduce the payout by 10% per year indefinitely. You require an 8% return on this stock.

a. What will you pay for a share today?

b. What will you pay for a share ten years from today?

Reference no: EM133074784

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