PT boats plan a $2.25 a share dividend at the end of each of the next 2 years at the end of year 3, it will pay a final liquidating dividend of $15 a share after that, the company plans to close its doors permanently.

What is the current value of this stock at a discount rate of 15 percent ?

Answer rating: 100% (QA)

To calculate the current value of the stock we need to discount the expected future dividends to ... View the full answer