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An investor plans to buy a common stock and hold it for four years. The investor expects to receive $2 in dividend a year and

An investor plans to buy a common stock and hold it for four years. The investor expects to

receive $2 in dividend a year and $26 from the sales of the stock at the end of year 4. If the investor

wants a 12% return (compound annually), the maximum price the investor should pay for the stock

today is roughly? Show your calculations.

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