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15) Lunar Adventures Inc is expected to pay a dividend of $1.40 per share at the end of this year and expected to pay a
15) Lunar Adventures Inc is expected to pay a dividend of $1.40 per share at the end of this year and expected to pay a dividend of $1.50 per share at the end of the second year. As well, you expect the stock price to be $25.00 at the end of the second year. If the firm's equity cost of capital is 10% and you plan to hold the stock for one year, the price you would expect to be able to sell a share of the stock in one year (just after the dividend is paid) is closet to: a) $22.73 b) $23.17 c) $24.09 d) $25.49 e) $26.50
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