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00 Question 19 Tom's back at it again, but this time he wants to price a dividend paying stock that he'll hold for 10

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00 Question 19 Tom's back at it again, but this time he wants to price a dividend paying stock that he'll hold for 10 years. He's being offered $45 for it, and expects to sell it for $85. Assuming his required rate of return is 12%, should he purchase this stock? 1 2 3 14 5 Year $2 $3 $2.5 $3 $3 Dividend Yes he should purchase it, it's being offered at a discount compared to $16.84 No he should not buy it, it's being sold at a premium compared to $44.21 Yes he should purchase it, it's being offered at a discount compared to $16.84 No he should not buy it, it's being sold at a premium compared to $44.21 Year Dividend 6 $4 7 $4 8 $3 9 $3.5 10 $3 4 pts

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