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4. You are considering the purchase of a share of AFZ Corporation common stock. You expect to sell it at the end of 1 year
4. You are considering the purchase of a share of AFZ Corporation common stock. You expect to sell it at the end of 1 year for $32.00. You will also receive a dividend of $3.50 at the end of the year. AFZ just paid a dividend of $2.25. If your required return on this stock is 12%, what is the most you would be willing to pay for it now? a) $28.57 b) $33.05 c) $31.70 d) $30.80
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