A company just paid a dividend of $1.03 a share. It expects to pay $.90 a share next year and a final liquidating dividend of $18.44 in two years. What is one share of the stock worth today if the required rate of return is 16%?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
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A company just paid a dividend of $1.03 a share. It expects to pay $.90 a share next year and a final liquidating dividend of $18.44 in two years. What is one share of the stock worth today if the required rate of return is 16%?

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