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Rather than selling all remaining shares today, now you decide to consider a longer holding period. That is, you will sell all remaining shares in

Rather than selling all remaining shares today, now you decide to consider a longer holding period. That is, you will sell all remaining shares in 5 years rather than immediately. Assume that the stock price will grow at 10% rate per year going forward, regardless of what the starting price is today. Also assume that Cisco will pay no other dividend over the next 5 years. Note that these liquidation proceeds (both after dividend payments and share repurchase) are subject to capital gain taxes (15% tax rate) regardless of when you sell the shares. 9. What would be the stock price after 5 years under each scenario (i.e. the dividend and share repurchase scenario)? (0.3 points) Hint: you can compute the future value of the current stock price.

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