Horseshoe stables is losing significant market share and


Horseshoe Stables is losing significant market share and thus its managers have decided to decrease the firm's annual dividend. The last annual dividend was $0.90 a share but all future dividends will be decreased by 10 percent annually. What is a share of this stock worth today at a required return of 15 percent?

A.$3.06

B. $3.24

C.$3.41

D. $3.59

E. $3.95

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Financial Management: Horseshoe stables is losing significant market share and
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