What to pay for a share today


Antiques 'R' Us is a mature manufacturing firm. The company just paid a dividend of $11.70, but management expects to reduce the payout by 4.5 percent per year, indefinitely.

If you require a return of 12 percent on this stock, what will you pay for a share today? Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).

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Finance Basics: What to pay for a share today
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