You are considering buying a share of stock in Company ABC. At the end of years 1, 2, and 3 the stock will pay you a dividend of $10 . In addition, at the end of the third year you expect to sell the share of stock for $200 . If the interest rate is 5%, how much is the share of ABC stock worth to you today?
a. $200
b. $210
c. $220
d. $230
a
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Yolanda received a $100 savings bond for her birthday. The bond pays $100 at maturity, which is in five years. If the interest rate is 3%, the bond has a present value of $86.26
Indicate whether the statement is true or false
An economic recession in Japan will cause the aggregate demand curve in the United States to shift to the right.
Answer the following statement true (T) or false (F)
Raising an existing tariff on grapes from Chile will: a. increase U.S. imports of Chilean grapes
b. increase U.S. consumption of domestically produced grapes. c. increase total U.S. consumption of grapes. d. do all of the above.
Stock market bubbles impact consumers by:
A. encouraging more work and delaying retirement. B. encouraging greater consumption and less saving. C. encouraging greater consumption and greater saving. D. resulting in less investment in home ownership and more into stocks.