Whistle Stop expects its current annual $4.76 per share common stock dividend to remain the same...

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Whistle Stop expects its current annual $4.76 per share common stock dividend to remain the same...

Whistle Stop expects its current annual $4.76 per share common stock dividend to remain the same for the foreseeable future. Therefore, the value of the stock to an investor with a required return of 12% is

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Answer 1

Answer #1

Value of stock=Annual dividend/required return

=4.76/0.12

which is equal to

=$39.67(Approx).

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Answer 2

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Whistle Stop expects its current annual $4.76 per share common stock dividend to remain the same...

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