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Jack wants to purchase common stock of Sooner Inc. and hold it for 10 years. Thee company just announced a payout plan that involves an
Jack wants to purchase common stock of Sooner Inc. and hold it for 10 years. Thee company just announced a payout plan that involves an annual cash dividend of $5.00 per share for the next 15 years. Jack believes that he will be able to sell the stock for $40 at the end of 10 years. In order to earn 11% on this investment, how much should he pay for this stock?
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