What is the value of your holdings in this stock

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1. You own 1,020 shares of Difference Maker Company stock. The company plans on issuing a dividend of $.1.60 a share one year from today and then issuing a final liquidating dividend of $7.80 a share two years from today. Your required rate of return is 15 percent. Ignoring taxes, what is the value of your holdings in this stock?

$8,367.44

$8,006.29

$7,804.53

$7,435.01

$6,883.20

2. Yesterday, the DJIA closed at 12,309.16. The divisor is 0.123017848. Today, every one of the stocks in the index increased in value by $0.40 a share. What is the value of today's closing DJIA?

a) 12,564

b) 12,442

c) 12,367

d) 12,407

e) 12,571

Reference no: EM132005796

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