Which of the following values is closest to the amount that should be paid for a stock that will pay a dividend of $10 1 year from now and $11 two years from now? The stock will be sold in 2 years for an estimated price of $120. The appropriate discount rate is 9%.
A) $114.
B) $119.
C) $124.
D) $129.
E) $138.
Correct Answer:
Verified
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