JK IncIs a Very Cyclical Type of Business Which Is Reflected

Multiple Choice

JK Inc.is a very cyclical type of business which is reflected in its dividend policy.The firm pays a dividend of $2.00 a share every other year with the last payment having just been paid.Five years from now,the company is repurchasing all of the outstanding shares at a price of $50 a share.What is the current value of one share at a discount rate of 12 percent?

A) $34.03
B) $31.24
C) $33.78
D) $27.89
E) $34.99