You Own 100 Shares of MXR,Inc

question 69

Multiple Choice

You own 100 shares of MXR,Inc.stock.The company has stated that it plans on issuing a dividend of $.50 a share one year from today and then issuing a final liquidating dividend of $2.00 a share two years from today.Your required rate of return is 10%.Ignoring taxes,what is the value of one share of this stock today?

• A)$2.11
• B)$2.35
• C)$2.50
• D)$2.80
• E)$2.90

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