You own 200 shares of Loner stock. The firm announced that it will be issuing a dividend of $.20 a share one year from today followed by a final liquidating dividend of $1.60 a share two years from today. If you can earn 7 percent on your funds, what will be the value of your total investment income in two years if you do not want to receive any funds until then?

A) $362.80
B) $266.67
C) $302.30
D) $348.04
E) $247.78


A) $362.80

Business

You might also like to view...

Writing an online blog uses the same principles as writing a traditional report

Indicate whether the statement is true or false.

Business

Give three examples of modern marketplaces

What will be an ideal response?

Business

The use of absorption costing can result in misleading product cost information.

Answer the following statement true (T) or false (F)

Business

The use of an applicant's personal opinions by underwriters for rating criteria directly violates which guiding principle of underwriting?

A) Separation and class homogeneity B) Reliability C) Incentive value D) Social acceptability

Business