Pfender Guitars has a current annual cash dividend policy of $7.00. The price of the stock is set to yield a return of 8%. What is the price of this stock if the dividend will be paid a. for 8 years and then the comapny repurchases the stock for $25? b. for 11 years and then the comapny repurchases the stock for $25? c. for 40 years and then the comapny repurchases the stock for $25? d. for 60 years and then the comapny repurchases the stock for $25? e. for 100 years and then the comapny repurchases the stock for $25? f. forever with no repurchase of the stock?

Pfender Guitars has a current annual cash dividend policy of $7.00. The price of the stock is set to yield a return of 8%. What is the price of this stock if the dividend will be paid a. for 8 years and then the comapny repurchases the stock for $25? b. for 11 years and then the comapny repurchases the stock for $25? c. for 40 years and then the comapny repurchases the stock for $25? d. for 60 years and then the comapny repurchases the stock for $25? e. for 100 years and then the comapny repurchases the stock for $25? f. forever with no repurchase of the stock?

Name: KPfender Guitars has a current annual cash dividend policy of $7.00.
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Description: KPfender Guitars has a current annual cash dividend policy of $7.00. The price of the stock is set to yield a return of 8%.What is the price of this stock if the dividend will be paida. for 8 years and then the comapny repurchases the stock for $25?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 13P

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