Question: 9. Upwind Tours just announced that it will pay an annual dividend of $3.60 a share one year from now. Two years from now, the

9. Upwind Tours just announced that it will pay an annual dividend of $3.60 a share one year from now. Two years from now, the company expects to pay a $28 a share liquidating dividend. After that, the company will cease operations. What is the current value per share at a discount rate of 12.5 percent? A. $23.88

B. $24.97 C. $25.32 D. $28.09 E. $29.16

10. Precision Engineering recently announced that its next annual dividend will be $1.20 per share with later dividends increasing by 2.5 percent annually. What is the current value of this stock to you if you require a 12 percent rate of return? A. $12.63

B. $12.95 C. $13.05 D. $13.37 E. $13.72

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