Cowboy is expected to (1) pay a cash dividend of $11 per share one year from...

Question

Question

Answer 1

Answer #1

C.27.50.

price one year from now = dividends at end of year / (1+ required rate^1.

(1 is used since the difference between second year and first year is 1).

=>$30.25 / (1.10)^1

=>$27.50.

Answer 2

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