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You own 430 shares of Abco, Inc. stock. The company has stated that it plans on issuing a dividend of $0.40 a share at the
You own 430 shares of Abco, Inc. stock. The company has stated that it plans on issuing a dividend of $0.40 a share at the end of this year and then issuing a final liquidating dividend of $2.50 a share at the end of next year. Your required rate of return is 6 percent. Ignoring taxes, what is the value of one share of this stock today?
A. $2.90
B. $2.84
C. $4.06
D. $2.74
E. $2.60
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