Solved

Leslie Owns 600 Shares of Good Manners Stock

Question 42

Multiple Choice

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents