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An investor owns 1,400 shares of a company's stock. The company plans on issuing a dividend of $5 a share one year from today, another
An investor owns 1,400 shares of a company's stock. The company plans on issuing a dividend of $5 a share one year from today, another dividend of $8.20 a share two years from today, and then issuing a final liquidating dividend of $60 a share three years from today. The required rate of return is 17.5 percent. Ignoring taxes, what is the value of the investor's holdings in this stock?
$66,052.96
$67,020.25
$65,085.67
$67,987.54
$64,118.38
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