Which of the Following Values Is Closest to the Amount

question 59

Multiple Choice

Which of the following values is closest to the amount that should be paid for a stock that will pay a dividend of $10 in one year and $11 in two years? The stock will be sold in 2 years for an estimated price of $120. The appropriate discount rate is 9%.

• A) $114.60
• B) $119.43
• C) $124.20
• D) $129.50
• E) $138.75

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Definitions:

Tax Return

A form or forms filed with a government body that reports income, expenses, and other pertinent tax information.

Act of Omission

A legal concept describing a failure to act when there is a duty to do so, which can result in liability.

Mens Rea

A legal principle that refers to the intent or knowledge of wrongdoing that constitutes part of a crime, as opposed to the action or conduct of the accused.

Actus Reus

A term from Latin meaning "guilty act," referring to the physical act of committing a crime, as opposed to the mental intent.