Question: A common stock is held for two years, during which time it receives an annual dividend of $20. The stock was sold for $100 and

A common stock is held for two years, during which time it receives an annual dividend of $20. The stock was sold for $100 and generated an average annual return of 32%. What price was paid for the stock what is the break-even probability of collection for a firm that has a 40% profit margin (ignore present value)?

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