Acme just paid a dividend of 120 a share the company


Question: ACME just paid a dividend of $1.20 a share. The company announced today that it will continue to pay this constant dividend for the next 3 years after which time it will stop paying dividends permanently. What is one share of this stock worth today if the required rate of return is 7%?

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Finance Basics: Acme just paid a dividend of 120 a share the company
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