Burkhardt Corp. pays a constant $14.70 dividend on its stock. The company will maintain this dividend for the next 10 years and will then cease paying dividends forever. If the required return on this stock is 11 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Share price

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Burkhardt Corp. pays a constant $14.70 dividend on its stock. The company will maintain
this dividend for the next 10 years and will then cease paying dividends forever.
If the required return on this stock is 11 percent, what is the current share price? (Do not
round intermediate calculations and round your answer to 2 decimal places, e.g.,
32.16.)
Share price
Transcribed Image Text:Burkhardt Corp. pays a constant $14.70 dividend on its stock. The company will maintain this dividend for the next 10 years and will then cease paying dividends forever. If the required return on this stock is 11 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Share price
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