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You own 260 shares of Abco, Inc. stock. The company has stated that it plans on issuing a dividend of $.50 a share at the end of this year and then issuing a final liquidating dividend of $2.05 a share at the end of next year. Your required rate of return on this security is 10 percent. Ignoring taxes, what is the value of one share of this stock today?

A. $2.37

B. $2.11

C. $2.60

D. $2.15

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Basic Finance, Finance

Category:- Basic Finance
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