Question
An investment costs $8 today. It will pay two dividends of $0.51, respectively in 6 months and in 1 year. If the prevailing interest rate
An investment costs $8 today. It will pay two dividends of $0.51, respectively in 6 months and in 1 year. If the prevailing interest rate is 4.51% per annum, what must the final price be at the end of 1 year to make this a fair investment with an NPV of $0 ?
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Short Term Financial Management
Authors: John Zietlow, Matthew Hill, Terry Maness
5th Edition
1516512405, 9781516512409
