PV of Dividends: Next Year Jenkins Traders Will Pay a Dividend

question 80

Multiple Choice

PV of dividends: Next year Jenkins Traders will pay a dividend of $3.00. It expects to increase its dividend by $0.25 in each of the following three years. If their required rate of return is 14 percent, what is the present value of their dividends over the next four years?

• A) $13.50
• B) $9.71
• C) $12.50
• D) $11.63

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