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Dell Electronics made several announcements concerning its common stock today. First, the company announced that its next annual dividend has been set at $2.75 a
Dell Electronics made several announcements concerning its common stock today. First, the company announced that its next annual dividend has been set at $2.75 a share. Secondly, the company announced that revenues have been increasing by 7% each year. The company also announced that all future dividends will increase by 5% annually. What is the maximum amount you should pay to purchase a share of Dell Electronic's stock if your goal is to earn a 10% rate of return?
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