Forever 21 is expected to pay an annual dividend of $2.4 per share in one...
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Accounting
Forever 21 is expected to pay an annual dividend of $2.4 per share in one year, which is then expected to grow by 7% per year. The required rate of return is 14%.
1.What is the current stock price?
2.What is the current stock price if the annual dividend of $2.4 hasjustbeen paid? (i.e. paid yesterday or earlier today)
3.What is the current stock price if the annual dividend of $2.4 hisabout to bepaid? (i.e. paid tomorrow or later today)
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