Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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
image text in transcribed
Hogst Inc, has an immediase cash of $15,000 and another $15,000 a year from now. After then the firm will be liquidated. Go Hogst ine, has no investment prolocts and 5,000 nextyear, what is Go Hogal inc's ourrent value per ahare? $24.16$28.64$19.09$36.68$26.13

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Financial Management

Authors: R. Charles Moyer, James R. McGuigan, William J. Kretlow

11th Edition

0324653506, 978-0324653502

More Books

Students also viewed these Finance questions