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Calculate the expected value of each of the following stocks and explain whether or not you would purchase them. - The price of Stock A
Calculate the expected value of each of the following stocks and explain whether or not you would purchase them.
The price of Stock A is $ per share. You expect that the stock will pay a dividend of $ at the end of six years, at which time you expect the stock will be selling for $ per share. You require a rate of return.
The price of Stock B is $ per share. The stock recently just paid $ a share in dividends, and you expect dividends to grow at You require a rate of return.
The price of Stock C is $ per share. You expect that the stock will pay a dividend of $ at the end of the year and $ at the end of two years. You expect the stock will be selling for $ per share in two years. You require a rate of return.
The price of Stock D is $ per share. You expect that the stock will pay a dividend of $ at the end of the year, $ at the end of two years, and $ at the end of three years. You expect the stock will be selling for $ per share in three years. You require a rate of return.
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