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Nynet, Inc., paid a dividend of $3.76 last year. The company's management does not expect to...

Nynet, Inc., paid a dividend of $3.76 last year. The company's management does not expect to increase its dividend in the foreseeable future. If the required rate of return is 13.0 percent, what is the current value of the stock?

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Answer #1

Price of the stock is $28.92

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Current value of stock = Annual dividend/ required rate

                                    = 3.76/ .13

                                     = 28.92

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Feel free to comment if you need further assistance J

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