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General Stores Recently Announced That It Will Pay Annual Dividends

Question 37

Multiple Choice

General Stores recently announced that it will pay annual dividends of $1.05,$.80,and $.50 over the next 3 years,respectively.The following year,the firm will close and pay a final dividend of $11.30 a share.What is one share of this stock worth today at a discount rate of 16.6 percent?


A) $8.24
B) $7.21
C) $7.92
D) $6.72
E) $6.81

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