Question
1. What is the maximum price Erica should pay for Rangoon Corp. common stock if her required return is 5% and she expects to sell
1. What is the maximum price Erica should pay for Rangoon Corp. common stock if her required return is 5% and she expects to sell the stock in one year for $50 per share, immediately after she receives a $.50 per share dividend?
| a. | $50.00 |
| b. | $48.10 |
| c. | $48.00 |
| d. | $45.00 |
| e. | $40.73 |
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Analysis For Financial Management
Authors: Robert C. Higgins
10th International Edition
007108648X, 9780071086486
