Norfolk Southern announced today that it is going out of business. As of today, no more...
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Norfolk Southern announced today that it is going out of business. As of today, no more regular dividends will be paid. The firm will, however, pay two liquidating dividends. The first will be paid one. year from now in the amount of $15 a share. The second and final payment will be paid two years from now at an estimated $50 a share. What is the value of this stock today at a discount rate of 15 percent? Norfolk Southern announced today that it is going out of business. As of today, no more regular dividends will be paid. The firm will, however, pay two liquidating dividends. The first will be paid one. year from now in the amount of $15 a share. The second and final payment will be paid two years from now at an estimated $50 a share. What is the value of this stock today at a discount rate of 15 percent?
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Related Book For
Financial Theory and Corporate Policy
ISBN: 978-0321127211
4th edition
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
Posted Date:
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