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Assume that you are considering the purchase of a stock which will pay dividends of $4.50 during the next year. Further assume that you will
Assume that you are considering the purchase of a stock which will pay dividends of $4.50 during the next year. Further assume that you will be able to sell the stock for $100 one year from today and that your required rate of return is 15 percent. How much would you be willing to pay for the stock today?
$94.10
$95.37
$90.87
$77.8
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