The red bud co pays a constant dividend of 250 a share the


The Red Bud Co. pays a constant dividend of $2.50 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 8.1 percent?

$4.45

$2.70

$5.00

$2.81

$6.95

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Financial Accounting: The red bud co pays a constant dividend of 250 a share the
Reference No:- TGS01106393

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