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Business, 25.10.2019 21:43 jlbradley429

Blockbuster inc. just paid a dividend of $2 per share. dividends are expected to grow at a rate of minus 50% annually over the next three years. after that, it is expected that blockbuster will cease paying dividends forever. what is the fair market price for a share of blockbuster if shareholders require a return of 12%?
a) $2.21
b) $2.95
c) $1.61
d) $0
e) $1.47

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