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Determining the value of one share

You own 2,200 shares of Deltona Hardware. The company has stated that it plans on issuing a dividend of $0.42 a share at the end of this year and then issuing a final liquidating dividend of $2.90 a share at the end of next year. Your required rate of return on this security is 16 percent. Ignoring taxes, what is the value of one share of this stock to you today?

A. $2.30

B. $2.43

C. $2.52

D. $2.92

E. $3.32

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Determining the value of one share

Reference No:- TGS0672975

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Share cash dividend for the holders

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Determining the value of one share

Reference No:- TGS0672975

Recent Questions Asked Finance Basics

Q : Share cash dividend for the holders

Q : What are the capital costs of the investment

Q : Discuss the leadership attributes and skills

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