You own 1,000 shares of stock in Nova Industries. The company will cease operations in three years. You will receive $4.25 cash dividend in year
You own 1,000 shares of stock in Nova Industries. The company will cease operations in three years. You will receive $4.25 cash dividend in year 1, and $4.50 cash dividend in year 2. In year 3, the company will pay a liquidating dividend of $85 per share. The required return on the companys stock is 18 percent. What is the current price of your stock (ignore taxes)?
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Authors: Paula H. Song, Kristin L. Reiter
3rd Edition
1567939759, 978-1567939750
