What will be the value of five hundred of shares

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Question - You are considering investing after-tax cash benefits of US$6000 in a mature firm in the food and beverage industry. The firm's most recent common stock dividend was US$5.00 per share. Because of the firm's maturity and stable sales and earnings, firm's management feels that dividends will remain at the current level for the foreseeable future. If the required return on similar type shares is 7% what will be the value of five hundred (500) of the company's shares?

Reference no: EM133074370

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