New Tours last annual dividend was $2 a share.The company plans to lower the dividend by $.50 each year for the next three years.In Year 5,it will pay a final liquidating dividend of $22 a share.If the required return is 16 percent,what is the current per share value of this stock?
A) $12.83
B) $13.08
C) $9.80
D) $14.13
E) $15.86
Correct Answer:
Verified
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