Question
The Red Bud Co. pays a constant dividend of $3.20 a share. The company announced today that it will continue to do this for another
The Red Bud Co. pays a constant dividend of $3.20 a share. The company announced today that it will continue to do this for another 2 years after which time they will discontinue paying dividends permanently. What is one share of this stock worth today if the required rate of return is 8.8 percent?
A. $8.84
B. $3.63
C. $6.40
D. $3.48
E. $5.64
You are scheduled to receive $28,000 in two years. When you receive it, you will invest it for 9 more years at 8.0 percent per year. How much will you have in 11 years? |
A $33,663.40
B $58,770.74
C $55,972.13
D $65,285.89
E $53,173.52
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