SpeakerBoss intends to pay a dividend of $.84 per share one year from today. It also...
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SpeakerBoss intends to pay a dividend of $.84 per share one year from today. It also intends to pay a final, liquidating dividend of $7.46 per share two years from today. Assume you own 500 share of the firm, and your required rate of return is 13.6 percent. Ignoring taxes, what is the value to you today of one share of this stock? SpeakerBoss intends to pay a dividend of $.84 per share one year from today. It also intends to pay a final, liquidating dividend of $7.46 per share two years from today. Assume you own 500 share of the firm, and your required rate of return is 13.6 percent. Ignoring taxes, what is the value to you today of one share of this stock?
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To calculate the value of one share of the stock today we need to discount the future dividends a... View the full answer
Related Book For
Fundamentals of Investments
ISBN: 978-0132926171
3rd edition
Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey
Posted Date:
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