Question: Mr. Roger Kindle is considering purchasing a share with a market rate of $60. He intends to hold the investment for three years and then

Mr. Roger Kindle is considering purchasing a share with a market rate of $60. He intends to hold the investment for three years and then sell it off once he receives the dividend for the third year. The expected dividend is $20 every year. The cost of equity associated with this share is 18%. At the end of three years, he expects to sell the share at $102.

Advise Mr. Kindle whether he should buy the share or not.

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