Suppose that if you purchase a share of SuperCo, you will receive an annual dividend of $2.59 next year and every year after that (i.e., the dividend is unchanging). If the appropriate discount rate is 6.75%, what is the correct price of this stock? Round your answer to two decimal points and omit any units (e.g., 1.23 NOT $1.23).

Suppose that if you purchase a share of SuperCo, you will receive an annual dividend of $2.59 next year and every year after that (i.e., the dividend is unchanging). If the appropriate discount rate is 6.75%, what is the correct price of this stock? Round your answer to two decimal points and omit any units (e.g., 1.23 NOT $1.23).

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 12P

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