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7. What is the price for a stock with an expected dividend of $0.22 and price next year $95? (a) Use a 11% discount rate

7. What is the price for a stock with an expected dividend of $0.22 and price next year $95?

(a) Use a 11% discount rate to find the price of share by one period model.

(b) IF Stock is trading at $88 in the market will you buy or sell the stock and why?

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