If dividends are expected to decline at 8 percent per year, Finance Basics

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If dividends are expected to decline at 8 percent per year

You own shares of Old World DVD Company and are interested in selling them. With so many people downloading music these days, sales, profits, and dividends at Old World have been declining 8 percent per year. The firm just paid a dividend of $2.00 per share. The required rate of return for a stock this risky is 13 percent. If dividends are expected to decline at 8 percent per year, what is a share of the stock worth today?

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Finance Basics: If dividends are expected to decline at 8 percent per year

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Finance Basics: If dividends are expected to decline at 8 percent per year

Reference No:- TGS0606523

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Finance Basics: If dividends are expected to decline at 8 percent per year

Reference No:- TGS0606523

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