14. Boomer Products, Inc. manufactures "no- inhale" cigarettes. As its target customers age and pass...
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14. Boomer Products, Inc. manufactures "no- inhale" cigarettes. As its target customers age and pass on, sales of the product are expected to decline. Thus, demographics suggest that earnings and dividends will decline at a rate of 4% annually forever. The firm just paid a dividend of $2.50; given a required return of 12%, the stock should today should sell for: (5 Points) $10.25 $12.50 $15.00 $16.25 o$32.50
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