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zalisa [80]
2 years ago
14

Mature Products Corporation produces goods that are very mature in their product life cycles. Mature Products Corporation is exp

ected to pay a dividend in year 1 of $2.00, a dividend of $1.50 in year 2, and a dividend of $1.00 in year 3. After year 3, dividends are expected to decline at a rate of 1% per year. An appropriate required rate of return for the stock is 10%. The stock should be worth

Business
1 answer:
Pavel [41]2 years ago
3 0

Answer:

The value of stock = $10.567

Explanation:

We will solve it with the help of present value table, attached as follows:

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