Question-red bud co


The Red Bud Co. pays a constant dividend of $3.00 a share. The company announced today that it will continue to do this for another 2 years after which time they will discontinue paying dividends permanently. What is one share of this stock worth today if the required rate of return is 8.6 percent?

$8.31

$3.26

$6.00

$5.31

$3.40

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