The lighthouse co is in a downsizing mode the company paid


The Lighthouse Co. is in a downsizing mode. The company paid a $2.50 annual dividend last year. The company has announced plans to lower the dividend by $.50 a year. Once the dividend amount becomes zero, the company will cease all dividends permanently. The required rate of return is 16%. What is one share of this stock worth?

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Financial Management: The lighthouse co is in a downsizing mode the company paid
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