Next dividend will be an extraordinary dividend of 2440 per


MMK Cos. normally pays an annual dividend. The last such dividend paid was $1.65, all future dividends are expected to grow at a rate of 5 percent per year, and the firm faces a required rate of return on equity of 2 percent. If the firm just announced that the next dividend will be an extraordinary dividend of $24.40 per share that is not expected to affect any other future dividends, what should the stock price be? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

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Financial Management: Next dividend will be an extraordinary dividend of 2440 per
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