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AlexFokin [52]
2 years ago
13

You own 200 shares of Loner stock. The firm announced that it will be issuing a dividend of $.20 a share one year from today fol

lowed by a final liquidating dividend of $1.60 a share two years from today. If you can earn 7 percent on your funds, what will be the value of your total investment income in two years if you do not want to receive any funds until then
Business
1 answer:
nikklg [1K]2 years ago
7 0

Answer:

value of your total investment income   362.80

Explanation:

The computation of the value of your total investment income in two years is shown below

Value of Dividend after 2 years (200 × .20 × 1.07)42.80

Value of Liquidating Dividend (200 × 1.60) 320.00

value of your total investment income   362.80

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Answer:

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