Classic Pickles is a mature manufacturing firm.The company just paid a $4 annual dividend,but management expects to reduce the payout by 4 percent per year,indefinitely.If you require a 12 percent return on this stock,what will you pay for a share today?
A) $21.42
B) $24.00
C) $25.24
D) $28.56
E) $30.02
Correct Answer:
Verified
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