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Suppose you are willing to pay $25 today for a share of stock which you expect to sell at the end of one year for
Suppose you are willing to pay $25 today for a share of stock which you expect to sell at the end of one year for $26. If you require an annual rate of return of 10 percent, what must be the amount of the annual dividend which you expect to receive at the end of Year 1?
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