Examlex

Solved

Beaksley,Inc

question 78

Multiple Choice

Beaksley,Inc.is a very cyclical type of business that is reflected in its dividend policy.The firm pays a $2.00 a share dividend every other year.The last dividend was paid last year.Five years from now,the company is repurchasing all of the outstanding shares at a price of $55 a share.At an 9% rate of return,what is this stock worth today?


Definitions:

Premium

An amount paid for an insurance policy or an amount above the nominal value of a security or investment.

Market Rates

The prevailing interest or exchange rates in the financial markets at any given time.

Premium

The amount paid for an insurance policy or an addition to the standard cost or value of something.

Discount

A deduction from the usual cost of something, or the process of determining the present value of future cash flows by adjusting for the time value of money.

Related Questions