Iota incorporated is in a declining industry. it just paid a dividend of $7.50, and dividends...
Homework Answers
Share Value today = [D0 * (1 + g)] / [r - g]
= [$7.50 * (1 - 0.08)] / [0.10 - (-0.08)]
= $6.90 / 0.18 = $38.33
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Iota incorporated is in a declining industry. it just paid a
dividend of $7.50, and dividends...
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