MMK Cos normally pays an annual dividend. - 71105

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MMK Cos. normally pays an annual dividend. The last such dividend paid was $2.0, all future dividends are expect to grow at a rate of 7 percent per year, and the firm faces a required rate of return on equity of 32 percent. If the firm just announced that the next dividend will be an extraordinary dividend of $32.0 per share that is not expected to affect any other future dividends. Required: What should the stock price be?

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MMK Cos Solution.xlsx
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