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You Own 460 Shares of Western Steer Stock

Question 58

Multiple Choice

You own 460 shares of Western Steer stock.The company plans on issuing a dividend of $.90 a share one year from today and then issuing a final liquidating dividend of $5.40 a share two years from today.Your required rate of return is 14 percent.Ignoring taxes,what is the value of your holdings in this stock?


A) $2,274.52
B) $2,229.92
C) $2,898.00
D) $2,542.11
E) $3,303.72

Correct Answer:

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