A companyrsquos stock is currently worth 5000 per share


A company’s stock is currently worth $50.00 per share based on a recent quarterly dividend of $0.99 per share, expected quarterly growth of 1%, and a required rate of return of 12% compounded quarterly. However, new information has cast serious doubts on the future growth of this company’s dividends. Dividends are now expected to decline 1% every quarter. What should the stock be trading for after this new information is revealed?

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Financial Management: A companyrsquos stock is currently worth 5000 per share
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