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Home Care Providers Is Paying an Annual Dividend of $1

Question 93

Multiple Choice

Home Care Providers is paying an annual dividend of $1.10 every other year.The last dividend was paid two years ago.The firm will continue this policy until 3 more dividend payments have been paid.One year after the last dividend normal payment,the company plans to pay a final liquidating dividend of $40 per share.What is the current market value of this stock if the required return is 17 percent?


A) $18.92
B) $20.74
C) $23.16
D) $24.14
E) $24.53

Correct Answer:

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