You own 300 shares of Abco stock.The firm plans on issuing a dividend of $2.10 a share one year from today and then issuing a final liquidating dividend of $36.45 a share two years from today.Your required rate of return is 14.5 percent.Ignoring taxes,what is the value of one share of this stock to you today?
A) $33.93
B) $29.64
C) $26.62
D) $27.80
E) $31.05
Correct Answer:
Verified
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