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The price of Jane's Book Co. is now $63. The company pays no dividends. Ms. Johnson expects the price four years from now to be

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The price of Jane's Book Co. is now $63. The company pays no dividends. Ms. Johnson expects the price four years from now to be $100 per share. Should she buy Jane's Book Co. stock if she desires a rate of return of 12% ? Explain. (Hint: Evaluate this situation using justified price (intrinsic value). In this case ignore dividends.) The justified price (or intrinsic value) of the stock is $. (Round to the nearest cent.)

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