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What should the stock be worth

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Reference no: EM132730034

Question - Declining Products Corporation produces goods that are very mature in their product life cycles. Declining Products is expected to pay a dividend in year 1 of $1.06, a dividend of $0.96 in year 2, and a dividend of $0.91 in year 3. After year 3, dividends are expected to decline at a rate of 2% per year. An appropriate required rate of return for the stock is 8%. What should the stock be worth?

Reference no: EM132730034

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