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Your local toy store just announced that it will pay a $4 dividend next year, $3 the following year, and then a final liquidating dividend
Your local toy store just announced that it will pay a $4 dividend next year, $3 the following year, and then a final liquidating dividend of $46 a share in year 3. At a discount rate of 14 percent, what should one share sell for today?
| $39.09 | ||
| $36.87 | ||
| $46.21 | ||
| $45.64 | ||
| $47.48 |
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