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1. a) Analysts expect Exxon Mobil stock to pay a dividend of $3.55 in 1 year and is expected to sell for $46.58 at that
1. a) Analysts expect Exxon Mobil stock to pay a dividend of $3.55 in 1 year and is expected to sell for $46.58 at that time. If the required return is 6.1%, what is the value of the stock?
b) You are thinking about buying a stock and holding it for 2 years. You expect that the stock will pay a dividend of $1.31 in 1 year and $3.13 in two years. You expect to sell for $90.21 in 2 years. If the required return is 14.35%, what is the value of the stock.
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