WHISTLE STOP Trains pays a constant $16 diidend on its stock, companywill maintain tis diidend for next 14 yearsand will then cease paying dividends for ever, what is the current price per share if the reqiured return on this stock is 15%

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter7: Stocks (equity) - Characterstics And Valuation
Section: Chapter Questions
Problem 13PROB
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WHISTLE STOP Trains pays a constant $16 diidend on its stock, companywill maintain tis diidend for next 14 yearsand will then cease paying dividends for ever, what is the current price per share if the reqiured return on this stock is 15%
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