Question
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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Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
