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Assume you pay the reduced amount of 4 , 7 5 0 for a corporate stock that has a market value of 5 , 0
Assume you pay the reduced amount of for a corporate stock that has a market value of The stock pays a annual dividend of of its market value. Since this is primarily a dividend paying stock, you estimate that you will sell the stock years from now at the current market value. Develop spreadsheet functions that display the following results:
a Total amount of the dividends paid to you
b Equivalent future worth after years of the dividend at in per vear
c Present worth now year of the original purchase price, dividends and proceeds when the stock is sold after years, if i per year. Observe the sign on the result and explain what it means to you financially.
d Rate of Return on this entire investment over a year period. Note: The anwwer displayed here should confirm to your response to the question in part c
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