Cayman Boats plans to pay a $1.75 a share dividend at the end of each of the next 2 years.At the end of year 3,it will pay a final liquidating dividend of $25 a share.After that,the company plans to close its doors permanently.What is the current value of this stock at a discount rate of 10 percent?
A) $19.89
B) $20.26
C) $21.82
D) $23.80
E) $24.50
Correct Answer:
Verified
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