contestada

You own 200 shares of Loner stock. The firm announced that it will be issuing a dividend of $.20 a share one year from today followed by a final liquidating dividend of $1.60 a share two years from today. If you can earn 7 percent on your funds, what will be the value of your total investment income in two years if you do not want to receive any funds until then

Respuesta :

Answer:

value of your total investment income   362.80

Explanation:

The computation of the value of your total investment income in two years is shown below

Value of Dividend after 2 years (200 × .20 × 1.07)42.80

Value of Liquidating Dividend (200 × 1.60) 320.00

value of your total investment income   362.80

ayokenny2001

The value of your total investment income in two years from today, will be 362.80

What is investment income?

Investment income refers to the profit that is earned from investments like real estate and stock sales

The computation of the value of your total investment income in two years is shown below:

Value of Dividend after 2 years

= (200 × .20 × 1.07)

= 42.80

Value of Liquidating Dividend

= (200 × 1.60)

= 320.00

value of your total investment income  

= 362.80

Hence, the value of your total investment income in two years from today will be 362.80

Learn more about investment income here : https://brainly.com/question/25895372

Otras preguntas