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Currently, Mona Inc 's stock is selling for $55.50. Tara is thinking of buying some shares of Mona's stock. They expects the dividends will be
Currently, Mona Inc 's stock is selling for $55.50. Tara is thinking of buying some shares of Mona's stock. They expects the dividends will be Year 1: $2.00, Year 2: $3.00, Year 3: $5.00. At year 3, they anticipates selling the stock for $57.00. What is the price they would be willing to pay and should they buy this company's stock? they feel that 8% is the appropriate required rate of return.
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