Main Street Antiques Is Planning on Paying an Annual Dividend

question 1

Multiple Choice

Main Street Antiques is planning on paying an annual dividend of $2.20 per share next year.The company is slowly downsizing and is decreasing its dividend by 3 percent annually.What is the current value of this stock at a discount rate of 8 percent?

• A) $18.86
• B) $19.12
• C) $19.78
• D) $20.00
• E) $20.57

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The process of reasoning logically and systematically about decisions or beliefs based on facts and evidence rather than emotions or intuition.

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