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You own 100 shares of MXR stock. The company plans on issuing a dividend of $.50 a share one year from today, $.85 a share
You own 100 shares of MXR stock. The company plans on issuing a dividend of $.50 a share one year from today, $.85 a share two years from today, and then a final liquidating dividend of $12.60 a share three years from today. Your required rate of return on this stock is 16 percent. Ignoring taxes, what is the value of one share of this stock to you today?
$9.14
$12.03
$11.25
$10.60
$10.47
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