What will you pay for a share today

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Reference no: EM13809196

Antiques ‘R’ Us is a mature manufacturing firm. The company just paid a dividend of $11.70, but management expects to reduce the payout by 4.5 percent per year, indefinitely.

If you require a return of 12 percent on this stock, what will you pay for a share today?

Reference no: EM13809196

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