Multiple Choice
Deluxe Company expects to pay a dividend of $2 per share at the end of year 1,$3 per share at the end of year 2,and then be sold for $32 per share at the end of year 2.If the required rate of return on the stock is 15%,what is the current value of the stock?
A) $28.20
B) $32.17
C) $32.00
D) $29.18
Correct Answer:
Verified
Correct Answer:
Verified
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