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Suppose that iBanana stock is currently selling for $130 per share and that it earns a 8% return on the investment. You found out that

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Suppose that iBanana stock is currently selling for $130 per share and that it earns a 8% return on the investment. You found out that iBanana pays a $0.17 dividend per year and forecasts their share price to be $125 at the end of the first year. a) Determine the present value of all cash flows from the iBanana stock. tion b) Would you choose to purchase this stock

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