The Dividend on Simple Motors Common Stock Will Be $2

question 52

Multiple Choice

The dividend on Simple Motors common stock will be $2 in one year, $3.50 in two years, and $5.00 in three years. You can sell the stock for $75 in three years. If you require a 10% return on your investment, how much would you be willing to pay for a share of this stock today?

• A) $59.69
• B) $64.65
• C) $64.82
• D) $65.66
• E) $71.30

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