Mickey and Jenny Porter file a joint tax return, and they itemize deductions. The Porters incur $3,350 in investment expenses. T
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Answer:
$, is the right answer.
Explanation:
Let's assume that, there are three stages of growth therefore three stage dividend discount formula is being used.
Dividend (D1) = 2
The negative growth is of 5%
The present value of D1 =2
SECOND PERIOD OF ZERO GROWTH FOR TWO YEARS
THREE PERIOD IS CONSTANT GROWTH 6%
The equity values are = P(D1)+P(D2)+P(D3)+P(D4)+P(D5)+P(D6)
Equity values =
Therefore, the current price will be $