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Suppose that investors expected a stock to pay the following dividends over the next 8 quarters. And its stock price 8 quarters from now is
Suppose that investors expected a stock to pay the following dividends over the next 8 quarters. And its stock price 8 quarters from now is expected to equal $320. (Put those values in the timeline below). What price would the stock trade for today if the quarterly required return was 2%?
to t1 t2 t3 t4 t5 t6 t7 t8 (quarterly periods)
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