Pasqually Mineral Water, Inc., will pay a quarterly dividend per share of $1.10 at the end of each of the next 12 quarters. Thereafter, the dividend will grow at a quarterly rate of 1.6 percent, forever. The appropriate rate of return on the stock is 11 percent, compounded quarterly. What is the current stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Pasqually Mineral Water, Inc., will pay a quarterly dividend per share of $1.10 at the end of each of the next 12 quarters. Thereafter, the dividend will grow at a quarterly rate of 1.6 percent, forever. The appropriate rate of return on the stock is 11 percent, compounded quarterly. What is the current stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Name: Pasqually Mineral Water, Inc., will pay a quarterly dividend per share
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Description: Pasqually Mineral Water, Inc., will pay a quarterly dividend per share of $1.10 at the end of each of the next 12 quarters. Thereafter, the dividend will grow at a quarterly rate of 1.6 percent, forever. The appropriate rate of return on the stock is

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 17P

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