Langley Enterprises Pays a Constant Dividend of $0

Multiple Choice

Langley Enterprises pays a constant dividend of $0.85 a share.The company announced today that it will continue to pay the dividend for another 2 years after which time all dividends will cease.What is one share of this stock worth today if the required rate of return is 16.5 percent?

A) $0.92
B) $1.36
C) $2.04
D) $2.09
E) $2.20