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Go Hogs! Inc. has an immediate cash of $15,000 and another $15,000 a year from now. After then the firm will be liquidated. Go Hogs!
Go Hogs! Inc. has an immediate cash of $15,000 and another $15,000 a year from now. After then the firm will be liquidated. Go Hogs! Inc. has no investment projects and currently has 1000 shares. Assume the ex-dividend date is the same as the payment date, and the rate of return is 10%. If Go Hogs! Inc. pays dividends of $15,000 this year and $15,000 next year, what is Go Hogs! Inc.'s current value per share?
A. $24.16
B. $28.64
C. $19.09
D. $36.68
E. $26.13
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