Question: 3:37 PM Mon May 4 17% ut instructure.com Question 1 10 pts You are indecisive about which stock to buy Microsoft, which is selling for
3:37 PM Mon May 4 17% ut instructure.com Question 1 10 pts You are indecisive about which stock to buy Microsoft, which is selling for $173 a share; or Apple, which is selling for $285 a share. Microsoft stock promises to pay annual dividends of $4.00, $5.00, and $5.50 over the next three years respectively, and you estimate it can be sold for $190 at the end of the third year. You expect Apple to pay a dividend of $5.50 the first year, $8.50, and $10.50 over the next two years, respectively. You also expect Apple's stock to be trading at $330 in three years. Assume 10% opportunity cost of capital. Calculate the price of Microsoft Stock? $190.00 $173.00 O none of these O $154.65 O $134.65 O $205.00 O $150.50
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