Ask Question
12 April, 17:50

The Red Bud Co. pays a constant dividend of $2.00 a share. The company announced today that it will continue to do this for another 2 years after which time they will discontinue paying dividends permanently. What is one share of this stock worth today if the required rate of return is 7.6 percent?

+4
Answers (1)
  1. 12 April, 18:16
    0
    Share of this stock worth today if the required rate of return is 7.6 percent is $3.59

    Explanation:

    stock worth today = 2/1.076 + 2/1.076^2

    stock worth today = $ 3.59
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The Red Bud Co. pays a constant dividend of $2.00 a share. The company announced today that it will continue to do this for another 2 years ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers