Beaksley SA Is a Very Cyclical Type of Business Which

Multiple Choice

Beaksley SA 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 equity worth today?

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