Beaksley,Inc

Multiple Choice

Beaksley,Inc. is a very cyclical type of business which is reflected in its dividend policy. The firm pays a $2.00 a share dividend every other year. The last dividend was paid last year. Five years from now,the company is repurchasing all of the outstanding shares at a price of $50 a share. At an 8% rate of return,what is this stock worth today?

A) $34.03
B) $37.21
C) $43.78
D) $48.09
E) $53.18