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You own 300 shares of Abco stock. The firms plans on issuing a dividend of $2.10 a share one year from today and then issuing
You own 300 shares of Abco stock. The firms plans on issuing a dividend of $2.10 a share one year from today and then issuing a final liquidating dividend of $36.45 a share two years from today. Your required rate of return is 14.5 percent. Ignoring taxes, what is the value of one share of this stock to you today?
| $33.93 | ||
| $29.64 | ||
| $26.62 | ||
| $27.80 | ||
| $31.05 |
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Foundations Of Financial Markets And Institutions
Authors: Frank J. Fabozzi, Franco Modigliani, Michael G. Ferri
2nd Edition
0136860567, 9780136860563
