ABC Corporation is expecting their sales to decline

Finance Dec 27, 2020

ABC Corporation is expecting their sales to decline. Thus, the company has announced that they will be reducing their annual dividend by 4% a year for the next four years. After that, they will maintain a constant dividend of $1 a share. Last year, the company paid $1.80 per share. What is this stock worth to you if you require a 12% rate of return? $10.27 $9.29 $13.10 $11.30 $12.07

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