Kay's sewing loft is going to reduce its annual dividend by 10 percent a year for the next two years. after that, it will maintain a constant dividend of $2 a share. last year, the company paid an annual dividend of $3 per share. what is the market value of this stock if the required return is 13.7 percent? group of answer choices

The answer of the following question is $ 25.711

Explanation:

Dividend (D0)= $ 3 per share

D1 = $ 3 * (1 - 0.10) = 2.7 per share

D2 = $ 2.7 * (1 - 0.10) = 2.43 per share

P0 = $ 2 / 0.137 = $ 14.598

Market value of this stock = D1 * PVF 1 + D2 * PVF2 + P0 * PVF2

= 2.7 * 1/(1+0.137) + 2.43 * 1/(1+ 0.137)^2 + 14.598 * 1/(1+ 0.137)^2

= 3.699 + 3.141 + 18.871

= $ 25.711

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number