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Suppose you are thinking of purchasing the stock of ABCD, inc. You expect it to pay a $6 dividend in one year, and you believe

Suppose you are thinking of purchasing the stock of ABCD, inc. You expect it to pay a $6 dividend in one year, and you believe that you can sell the stock for $14 at that time. If you require a return of 10% on investment of this risk, what is the maximum you would be willing to pay?

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