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Posted on May 19, 2024

Suppose you want to buy a stock, which will pay $1.5 dividend in next year, price of this stock will be $52 in next year.

Suppose you want to buy a stock, which will pay $1.5 dividend in next year, price of this stock will be $52 in next year. How much are you willing to pay for this stock today if your required rate for investment is 11%?

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