Problem 8.07 – Valuation of Stocks with Finite Dividend Periods: The Cases of Hailey Corp. Or Gruber Corp.
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
Determine the current share price for a company’s stock given the constant dividend payment, the duration of the dividend payments, and the required return on the stock. The assumption in the problem is that the dividends are ceased after a certain number of years. Round your answer to two decimal places.
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