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The board of Aramark Catering Co. has just decided it will reduce its annual dividend...

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Finance

The board of Aramark Catering Co. has just decided it will reduce its annual dividend distribution by 10 cents per year until it pays a constant $2 per share annually going forward. Very recently the company paid a $2.20 per share dividend. What should one share of this stock be worth in the markets next year if investors presently expect an 8 percent return on the firm?

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