Business, 30.12.2020 23:00 blackjack73

In the challenging world of retail sales, Macy's, Inc.'s (M's) revenues are declining while expenses are generally flat. Based on recent conversations with management at Macy's, analysts believe that dividends will decline at a rate of 7% perpetually. The firm just paid a dividend of $5.10 per share and the required return on the stock is 3% a) At what price should a share of M stock sell today? (2 pts.)
b) Calculate what the stock should sell for 8 years from now. 12 pts.)
c) Briefly explain, perhaps with the aid of a single calculation, why an investor would still be interested in buying the stock today even though the stock price is predicted to fall acrosats time. (2 pts.)

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In the challenging world of retail sales, Macy's, Inc.'s (M's) revenues are declining while expenses...

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