s. What is the present value of a share of stock for this company if we want a 9%

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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Suppose a company will be in business for only the next 10 years and pays an annual dividend of $1.75 for those ten years. What is the present value of a share of stock for this company if we want a 9%
return on the stock?
O A. $19.08
O B. $15.97
OC. $26.59
O D. $11.23
Transcribed Image Text:Suppose a company will be in business for only the next 10 years and pays an annual dividend of $1.75 for those ten years. What is the present value of a share of stock for this company if we want a 9% return on the stock? O A. $19.08 O B. $15.97 OC. $26.59 O D. $11.23
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