posted by Anonymous .
MMK Cos. normally pays an annual dividend. The last such dividend paid was $2.3, all future dividends are expect to grow at a rate of 6 percent per year, and the firm faces a required rate of return on equity of 18 percent. If the firm just announced that the next dividend will be an extraordinary dividend of $29.0 per share that is not expected to affect any other future dividends. What should the stock price be?