Question
Stock MMM will pay two yearly dividends of $1 starting one year from today and the company promises to repurchase the shares for $10 at
Stock MMM will pay two yearly dividends of $1 starting one year from today and the company promises to repurchase the shares for $10 at the end of the second year. The discount rate is 10%. How much is the stock worth today?
$10.17 | ||
$10.90 | ||
$12.00 | ||
$10.00 | ||
Less than $9.99 |
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Intermediate Financial Management
Authors: Eugene BrighamPhillip Daves
1st Edition
0324594712, 9780324594713
