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An investor requires a return of 12 percent. A stock sells for $25, it pays a dividend of $1, and the dividends compound annually at

  1. An investor requires a return of 12 percent. A stock sells for $25, it pays a dividend of $1, and the dividends compound annually at 7 percent. Will this investor find the stock attractive? What is the maximum amount that this investor should pay for the stock? show with steps and formula

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