Your answer should be B. Contact the person a week or two in advance and ask for a convenient time to meet. If not then it should be D. Hope this helps!
You'll have to give me the options.
Should be accessible for road...,
Answer:
I would pay up to 81.52 dollars for the share that way I will get a 12% return at least
Explanation:
We need to calcualte the present value of the cash flow of each year using the formula for present value of a lump sum:
Dividends Present Value
1st year 3.00 2.678571429 *1
2nd year 4.25 3.38807398 *2
3rd year 106.00* 75.44870627 *3
<em>Value of the share at 12% discount rate 81.51535168</em>
*100 dollars from the sale plus 6 dollars of dividends
*1
Div: 3.00
time: 1
rate: 0.12
PV 2.678571429
*2
Dividends 4.25
time 2.00
rate 0.12000
PV 3.3881
*3
Maturity 106.00
time 3.00
rate 0.12000
PV 75.4487