Upwind Tours Just Announced That It Will Pay an Annual

question 95

Multiple Choice

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

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Oversimplified generalizations about a group of people without considering individual differences.

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A preconceived opinion or judgment towards people, places, or things that is not based on reason or actual experience, often involving negative attitudes.

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