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You own 200 shares of Loner, Inc. stock. The company has stated that it plans on issuing a dividend of $.20 a share one year
You own 200 shares of Loner, Inc. stock. The company has stated that it plans on issuing a dividend of $.20 a share one year from today and then issuing a final liquidating dividend of $1.60 a share two years from today. Your required rate of return is 11%. Ignoring taxes, what is the value of one share of this stock today?
$1.48
$1.60
$2.20
$2.52
$2.80
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