Question: You own 3 0 0 shares of Abco stock. The firms plans on issuing a dividend of $ 3 . 5 0 a share one

You own 300 shares of Abco stock. The firms plans on issuing a dividend of $3.50 a share one year from today and then issuing a final liquidating dividend of $52.75 a share three years from today. Your required rate of return is 12.5 percent. Ignoring taxes, what is the value of one share of this stock to you today?

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