Problemlangley enterprises pays a constant dividend of 130, Ask an Expert

Accounting

Problem:

Langley Enterprises pays a constant dividend of $1.30 a share. The company announced today that it will continue to do this for another 2 years after which time it will discontinue paying dividends permanently.

Requirement:

Question: What is one share of this stock worth today if the required rate of return is 7 percent?

$3.74
$2.12
$2.35
$2.60
$3.50

Note: Explain in detail and show all computations in proper way.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91168108

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