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Homework answers / question archive / Nynet, Inc
Nynet, Inc., paid a dividend of $4.27 last year. The company's management does not expect to increase its dividend in the foreseeable future. If the required rate of return is 11.0 percent, what is the current value of the stock? (Round answer to 2 decimal places, e.g. 15.20.)
Computation of current value of stock;
Current value=Annual dividend/required return
=4.27/ 11%
=$38.82
