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Question
Upwind Tours just announced that it will pay an annual dividend of $3.60 a share one year from now. Two years from now, the company expects to pay a $28 a share liquidating dividend. After that, the company will cease operations. What is the current value per share at a discount rate of 12.5 percent?A. $23.88
B. $24.97
C. $25.32
D. $28.09
E. $29.16
Answer
This answer is hidden. It contains 2 characters.
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