The Blockbuster Business Model Is Slowly Dying and So Blockbuster's

question 109

Multiple Choice

The Blockbuster business model is slowly dying and so Blockbuster's dividends are expected to grow at a rate of -2% per annum in perpetuity.Blockbuster just (yesterday) paid a dividend of $2.00 per share.Blockbuster pays dividends annually.Stock holders require a rate of return of 10%.What is the fair stock price for Blockbuster today?

• A) $16.33
• B) $25.50
• C) $17.00
• D) $24.50
• E) $16.49

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A final remark or summary, often used to conclude a speech or written piece, encapsulating the main points or findings.

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