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Harmony Rose Ltd. pays a dividend of $1.5 million today, and also invests $1.5 million today that gives an average return of 20%. The current
Harmony Rose Ltd. pays a dividend of $1.5 million today, and also invests $1.5 million today that gives an average return of 20%. The current opportunity cost of capital is 10%. Under two-period perfect certainty model, compute:
the Dividend the firm would pay next year. Net Present Value (NPV) of the investment. Group of answer choices
$1.8m; $136,364
$1.5m; $136,364
$1.8m; $636,364
$1.5m;$636,364
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