Last week,Railway Cabooses paid its annual dividend of €1.20 per share.The company has been reducing the dividends by 10% each year.How much are you willing to pay to purchase share in this company if your required rate of return is 14%?
A)€4.50
B)€7.71
C)€10.80
D)€15.60
E)€27.00

Question

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The Answer of Last week,Railway Cabooses paid its annual dividend of €1.20 per share.The company has been reducing the dividends by 10% each year.How much are you willing to pay to purchase share in this company if your required rate of return is 14%?
A)€4.50
B)€7.71
C)€10.80
D)€15.60
E)€27.00

Last Week,Railway Cabooses Paid Its Annual Dividend of €1