Which of the following values is closest to the amount that should be paid for a stock that will pay a dividend of $10 in one year and $11 in two years? The stock will be sold in 2 years for an estimated price of $120. The appropriate discount rate is 9%.
A) $114.60
B) $119.43
C) $124.20
D) $129.50
E) $138.75
Correct Answer:
Verified
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