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Alpha Wood Interiors Announced That It Is Going Out of Business

question 55

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Alpha Wood Interiors announced that it is going out of business. As of today, no more regular dividends will be paid. The firm will, however, pay two liquidating dividends. The first will be paid one year from now in the amount of $17 a share. The second and final payment will be paid two years from now at an estimated $32 a share. What is the value of this stock today at a discount rate of 6 percent?

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Definitions:

Organizational Behavior

The study of individual and group dynamics within an organizational setting, aiming to improve productivity and employee wellbeing.

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The underlying basis or principle for something, providing support or the starting point from which something develops.

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A study within organizational psychology focusing on the application of positively oriented human strengths and psychological capacities to improve workplace performance.

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The way managers empower employees to make decisions, provide them with extensive training and the opportunities to increase their knowledge base, share important information, and provide incentive compensation.

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