America Boats Plans to Pay a $2

question 26

Multiple Choice

America Boats plans to pay a $2.10 a share dividend at the end of each of the next 2 years.At the end of year 3,it will pay a final liquidating dividend of $13 a share.After that,the company plans to close its doors permanently.What is the current value of this stock at a discount rate of 12 percent?

• A) $9.89
• B) $10.26
• C) $11.54
• D) $12.80
• E) $13.50

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An established guide or principle governing conduct or procedure within a particular area of activity.

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