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You own 2,200 shares of Deltona. The company has stated that it plans on issuing a dividend of $0.42 a share in one year and
You own 2,200 shares of Deltona. The company has stated that it plans on issuing a dividend of $0.42 a share in one year and then issuing a final liquidating dividend of $2.90 a share in two years. Your required rate of return on this security is 16%. Ignoring taxes, what is the value of one share of this stock to you today?
A. $2.30
B. $2.42
C. $2.52
D. $2.92
E. $3.32
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