Suppose Walmart Inc. plans to pay a dividend of $1.50 in one year (year 1)...
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Suppose Walmart Inc. plans to pay a dividend of $1.50 in one year (year 1) and $1.25 in two years (year 2). Following this, the company will not pay any dividends for 6 years. At the end of year 8 (year 8), the company will start paying a fixed annual dividend of $4.25 per share every year for eternity. If Walmart Inc.s equity cost of capital is 9.00%, what is its current price?
Answer Choices:
$26.13
$28.26
$30.68
$49.65
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