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Question 6 1 pts Assume that you are in a perfect MM world (no taxes, no bankruptcy, etc...). Puma has pledged to pay a $10
Question 6 1 pts Assume that you are in a perfect MM world (no taxes, no bankruptcy, etc...). Puma has pledged to pay a $10 dividend per share every year, forever. Its cost of equity is 10%. You are considering whether to buy the share today at the current market price, receive the next dividend (which is due tomorrow), and sell the share in exactly a year from today. What do you expect your return on this strategy to (approximately) be? 9% O 11% 10% 13% 12%
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