The hnh corporation will pay a constant dividend of 500


Question - The HNH Corporation will pay a constant dividend of $ 5.00 per share, per year, in perpetuity. Assume all investors pay a 15 % tax on dividends and that there is no capital gains tax. Suppose the other investments with equivalent risk to HNH stock offer an after-tax return of 12 %. What is the price of a share of HNH stock?

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Accounting Basics: The hnh corporation will pay a constant dividend of 500
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