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1. Pfender Guitars has a current annual cash dividend policy of $4.00. The price of the stock is set to yield an 8% return. What is the price of this stock if the dividend will be paid

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a. for 10 years and then the company repurchases the stock for $25.00?

 

b. for 15 years and then the company repurchases the stock for $25.00?

 

c. for 40 years and then the company repurchases the stock for $25.00?

 

d. for 60 years and then the company repurchases the stock for $25.00?

 

e. for 100 years and then the company repurchases the stock for $25.00?

 

f. forever with no repurchase of the stock?

 

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