Question: Using the information provided in the previous question, what is the FV of equity if the minimum required rate of return is 20%? 1)USD10 2)USD7

Using the information provided in the previous question, what is the FV of equity if the minimum required rate of return is 20%?

1)USD10

2)USD7

3)Missing information

The Previous Question:

You consider buying a stock and holding it for 1 year.

If you expect the dividend per share to be USD1 and the stock price to be USD11 after 1 year, what is the maximum price you would be willing to pay today?

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