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Suppose you are considering buying an IKEA stock this year.You know that an IKEA stock pays a dividend of $10 next year and you know
Suppose you are considering buying an IKEA stock this year.You know that an IKEA stock pays a dividend of $10 next year and you know you can sell it then for $5. You can always invest your money in a bank account for 2% return instead of buying stock. How much should you buy the stock for this year (that is, the maximum price)? Explain your reasoning
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