Apple Clean Corp pays dividends of $5.70, $9.80, $12.65, and $14.40 respectively over the next 4 years. After the 4th dividend payment, the company will dissolve and go out of business. Using a discount rate of 10.8 percent on the company's stock, what is the estimated stock price? Multiple Choice O $36.40 $38.37 $31.98 $33.80 $44.09

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Apple Clean Corp pays dividends of $5.70, $9.80, $12.65, and $14.40 respectively over the next 4 years. After the 4th dividend payment, the company will dissolve
and go out of business. Using a discount rate of 10.8 percent on the company's stock, what is the estimated stock price?
Multiple Choice
O
$36.40
$38.37
$31.98
$33.80
$44.69
Transcribed Image Text:Apple Clean Corp pays dividends of $5.70, $9.80, $12.65, and $14.40 respectively over the next 4 years. After the 4th dividend payment, the company will dissolve and go out of business. Using a discount rate of 10.8 percent on the company's stock, what is the estimated stock price? Multiple Choice O $36.40 $38.37 $31.98 $33.80 $44.69
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