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The price of a share of stock issued by a certain company is 30 on January 1,2023 . The price assumes annual dividends, with the
The price of a share of stock issued by a certain company is 30 on January 1,2023 . The price assumes annual dividends, with the first dividend due on December 31 , 2013 . The first dividend will be 1.65, with future dividends expected to grow at a rate of 3% per year forever. Which of the following statements are true, assuming the market capitalization rate remains the same in future years? If an investor buys 100 shares of stock on January 1, 2023, and later sells all 100 shares on January 1, 2026, the return will reach 15.3% If an investor requires an annual effective return of at least 9% on all its asset purchases, it will consider purchasing the common stock of this company on January 1,2023 . If an investor buys 100 shares of stock on January 1, 2023, and later sells all 100 shares on January 1, 2026, the investor will expect a capital gain of 278.18 On July 1,2023 , the price of the stock will be 1.5% greater than the price on January 1,2023
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