Stock Worth Today
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Xinhua Manufacturing Company has been generating stable revenues but sees no growth in it for the foreseeable future. The company's last dividend was $3.25, and it is unlikely to change the amount paid out. If the required rate of return is 12 percent, what is the stock worth today?
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Solution Summary
The solution gives detailed steps on calculating the stock value if the dividend value and rate of return are given. All the formula and calcuations are shown and explained.
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