Toy Mart recently announced that it will pay annual dividends at the end of the next two years of $1.60 and $1.10 per share, respectively. Then, in Year 5 it plans to pay a final dividend of $13.50 a share before closing its doors permanently. At a required return of 13.5 percent, what should this stock sell for today?
A. $3.24
B. $16.20
C. $9.43
D. $13.33
E. $12.70
Ans: C. $9.43
You might also like to view...
The following items were reported on the balance sheets and income statement for Bezos Corp: Accounts payable, December 31, 2016 $ 42,000 Accounts payable, December 31, 2017 48,000 Operating expenses 286,000 How would the change in accounts payable be reported in the operating activities section of the statement of cash flows under the indirect method?
a. As an addition to operating expenses b. As a deduction from operating expenses c. As an addition to net income d. As a deduction from net income
What is a negative influence of the Internet on relationships outlined in the text?
a. It can take time away from our relationships. b. It makes our relationships more time consuming. c. It makes our relationships less personal. d. It. makes it harder to get family approval of a relationship.
Marketing channel management calls for selecting, managing, and motivating individual channel members and evaluating their performance over time
Indicate whether the statement is true or false
_______ means providing customers with reliable products or services at competitive prices and delivered with minimal difficulty or inconvenience
a. Product leadership b. Customer intimacy c. Operational excellence d. Strategy