Leslie owns 600 shares of Good Manners stock.The company will pay per share dividends of $1.42 1 year from now and $1.48 2 years from now.Leslie does not want any dividend income 1 year from now but does want as much dividend income as possible the following year.She plans on creating her own homemade dividends and can borrow and lend at 7 percent.Ignoring taxes,what will her homemade dividend per share be 2 years from now?
A) $2.97
B) $2.90
C) $2.46
D) $3.00
E) $1.48
Correct Answer:
Verified
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