JEN CorpIs Expected to Pay a Dividend of $2

question 90

Multiple Choice

JEN Corp.is expected to pay a dividend of $2.00 per year indefinitely.If the appropriate rate of return on this stock is 12 percent per year,and the stock consistently goes ex-dividend 25 days before dividend payment date,what will be the expected maximum price in light of the dividend payment logistics?

• A)$1.14
• B)$16.54
• C)$16.67
• D)$18.52

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