ABC Inc. will be in business for only the next 10 years and pays an annual dividend of $2.65 for those ten years? What is the present value of a share of stock for thiscompany if we want a 7% return on the stock?O A. None of the above.B. $18.61OC. $69.44O D. $526.96

Annual dividend (D) = $ 2.65 Number of years (N) = 10 Years Required return (R) = 7%

Answered: ABC Inc. will be in business for only…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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ABC Inc. will be in business for only the next 10 years and pays an annual dividend of $2.65 for those ten years? What is the present value of a share of stock for this company if we want a 7% return on the stock? O A. None of the above. O B. $18.61 O C. $69.44 O D. $526.96