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MMK Cos. normally pays an annual dividend




Question;MMK Cos. normally pays an annual dividend. The last such dividend paid was $2.2, all future dividends are expect to grow at a rate of 5 percent per year, and the firm faces a required rate of return on equity of 17 percent. If the firm just announced that the next dividend will be an extraordinary dividend of $34.0 per share that is not expected to affect any other future dividends.Required:What should the stock price be?


Paper#50511 | Written in 18-Jul-2015

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