An investor owns 750 shares of a company's stock. The company plans on issuing a...
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An investor owns 750 shares of a company's stock. The company plans on issuing a dividend of $4.20 a share one year from today, another dividend of $5.00 a share two years from today, and then issuing a final liquidating dividend of $41 a share three years from today. The required rate of return is 14 percent. Ignoring taxes, what is the value of the investor's holdings in this stock? $25,512.38 $26,404.04 $27,369.80 $28,091.72 $29,447.53 A company paid an annual dividend of $4.20 a share. The firm has a target payout ratio of .40 and a speed of adjustment value of .70. What is the expected value of next year's annual dividend if the firm expects its earnings per share to be $6.50? $2.48 $2.62 $2.76 $2.90 $3.08 A company's stock currently sells for $10 a share. What type of stock split does the firm need to do if it wants to increase the price so that it trades around $25 a share? 2-for-5 reverse stock split 1-for-3 reverse stock split 1-for-4 reverse stock split 4-for-1 stock split 1-for-5 stock split
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