MMK Cos. normally pays an annual dividend. The last such dividend paid was $1.85

Question

MMK Cos. normally pays an annual dividend. The last such dividend paid was $1.85, all future dividends are expected to grow at a rate of 8 percent per year, and the firm faces a required rate of return on equity of 14 percent. If the firm just announced that the next dividend will be an extraordinary dividend of $24.60 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.)

Suppose a firm has a retention ratio of 59 percent and net income of $9.3 million. How much does it payout in dividends? (Enter your answer in dollars not in millions.)

Suppose a firm pays total dividends of $696,000 out of net income of $2.4 million. What would the firm

MMK Cos. normally pays an annual dividend. The last such dividend paid was $1.85, all future dividends are expected to grow at a rate of 8 percent per year, and the firm faces a required rate of return on equity of 14 percent. If the firm just announced that the next dividend will be an extraordinary dividend of $24.60 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.)

Explanation / Answer

i think that 22.4

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