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Aunt Mahjouba wants to buy a share of Sraphin & Co. It estimates that it will be able to resell the share in three years
Aunt Mahjouba wants to buy a share of Sraphin & Co. It estimates that it will be able to resell the share in three years at a price of $4,500. In the coming years, the company is expected to pay a dividend of $20 per year. The required profitability taking into account the risk is 10%.
What is the share price if the discount rate has been valued at 10%?
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