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Keong is considering an investment in Leong's Bar & Grille Corporation.Keong is planning to buy the stock today, hold it for 2 years, and then
Keong is considering an investment in Leong's Bar & Grille Corporation.Keong is planning to buy the stock today, hold it for 2 years, and then expects to sell the stock for $30 at the end of 2 years.Keong expects the first dividend to be $1.00 and the second dividend to be $2.30.If Keong requires a 14% rate of return, what is the value of Leong's Bar & Grille common stock to Keong today?
A) $25.73
B) $21.55
C) $24.54
D) $20.67
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