An investor plans to buy a common stock and hold it for four years. The investor expects to receive $2 in dividend a year and $26 from the sales of the stock at the end of year 4. If the investor wants a 12 return (compound annually), the maximum price the investor should pay for the stock today is roughly.

Answer rating: 100% (QA)

D Annual Dividend 2 P4 Sale Value in 4 years 26 r Required ret... View the full answer