You are considering whether to purchase a companys stock. The stock is expected to pay two dividends,
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You are considering whether to purchase a company’s stock. The stock is expected to pay two dividends, $1.65 at the end of year 1 and $1.05 at the end of year 2. The expected selling price of the stock is $17.70 at the end of year 2. If you require a rate of return of 19.5% per year for the investment, what is the maximum price that you are willing to pay per share?
Related Book For
Financial Management Principles and Applications
ISBN: 978-0134417219
13th edition
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
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