Beta Corporation is expected to pay the following dividends per share over the next two years, respectively: $5 and $7. If you expect to be able to sell the stock for $100 in next two years and your required rate of return is 10%, what is the most that you should be willing to pay for a share of this stock today? O A. $97.92 O B. $112 Oc. $92.97 O D. $85.46

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
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Beta Corporation is expected to pay the following dividends per share over the next two years, respectively: $5 and $7. If you expect to be able to sell the stock for $100 in next two years and your required
rate of return is 10%, what is the most that you should be willing to pay for a share of this stock today?
O A. $97.92
O B. $112
O c. $92.97
O D. $85.46
Transcribed Image Text:Beta Corporation is expected to pay the following dividends per share over the next two years, respectively: $5 and $7. If you expect to be able to sell the stock for $100 in next two years and your required rate of return is 10%, what is the most that you should be willing to pay for a share of this stock today? O A. $97.92 O B. $112 O c. $92.97 O D. $85.46
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