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Question
PT Boats plans to pay a $2.25 a share dividend at the end of each of the next 2 years. At the end of year 3, it will pay a final liquidating dividend of $15 a share. After that, the company plans to close its doors permanently. What is the current value of this stock at a discount rate of 15 percent?A. $9.89
B. $10.26
C. $11.54
D. $12.47
E. $13.50
Answer
This answer is hidden. It contains 2 characters.
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