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Locked-In Real Estate (LIRE) is preparing for its initial public offering (IPO). With its holdings consisting of rent-controlled apartments and no expansion plans, LIRE plans
Locked-In Real Estate (LIRE) is preparing for its initial public offering (IPO). With its holdings consisting of rent-controlled apartments and no expansion plans, LIRE plans to pay out all of its profits as dividends. These dividends amount to $5.25 per share, forever. If the expected rate of return is 10%, what is the price of LIRE stock?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
