Answered

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Pfender Guitars has a current annual cash dividend policy of ​$6.00. The price of the stock is set to yield a return of 7​%. What is the price of this stock if the dividend will be paid
a. for 9 years and then the comapny repurchases the stock for ​$25​?
b. for 14 years and then the comapny repurchases the stock for ​$25​?
c. for 50 years and then the comapny repurchases the stock for ​$25​?
d. for 60 years and then the comapny repurchases the stock for ​$25​?
e. for 100 years and then the comapny repurchases the stock for ​$25​?
f. forever with no repurchase of the​ stock?