Twinkie Dome Corporation will pay a dividend of $2.50 per share of preferred stock tomorrow....
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Twinkie Dome Corporation will pay a dividend of $2.50 per share of preferred stock tomorrow. Therefore, if you buy the stock today, you will receive this dividend. These annual dividends will continue to be paid forever. Given a discount rate of 16.5%, what price are you willing to pay today for a share of this stock?
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