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What will be the market value per share

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Jack owns 100 shares in ABC Ltd. The firm announces that it will pay $1 dividend per share one year from today and $2 dividend per share two years from today. After that, the firm will stop paying dividend. Jack does not want any dividend this year but wants as much dividend income as possible next year. If Jack can earn 10 percent return on his investments, what will be Jack's homemade dividend in two years, ignoring all taxes.

a.$3

b.$1.10

c.$2

d.3.10

Jack Ltd has 100,000 shares outstanding with a market value of $10 per share. What will be the market value per share if the firm does a 3-for-2 stock split?

a.$15

b.$20

c.$6.67

d.$10

Reference no: EM132998757

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