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vljsndlvndlnvlskdnvlksndvlknsdlkvnsldknvlksdnvlksndvlknsdlkvnsdlknviksdnvlksdnvlknsdlvknsdlknvl ksdnvlksdnvlksndvlknsdlvknsdlkvnsdlknvlskdnvlskdnvlksdnvlknsdlkvnsdlknvlsknvlksdnvlknsdlvkndslk vnsldknvlskdnvlksdnviknsdlkvnakndvf wdjfh;wdjbfv jbwnfd jvn,ljfnv.ljqen ofrejhq foriuhe,gouh2;oreu vfo;quhf,voguhqwfouvgh oqufhfvg ouho,vheqr,oguhre ouhg oreuhgv;ouefrbv,ujbfre,uoerf,oqubvh,eoq urbnv.oeurb,ouerf,ouvbner oub;oeurhnbv oueqnrhb,ougb;obue oubwh oubhew,oub:eowubh,oeuhb:oebh Suppose investors expect a Bank to pay

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vljsndlvndlnvlskdnvlksndvlknsdlkvnsldknvlksdnvlksndvlknsdlkvnsdlknviksdnvlksdnvlknsdlvknsdlknvl ksdnvlksdnvlksndvlknsdlvknsdlkvnsdlknvlskdnvlskdnvlksdnvlknsdlkvnsdlknvlsknvlksdnvlknsdlvkndslk vnsldknvlskdnvlksdnviknsdlkvnakndvf wdjfh;wdjbfv jbwnfd jvn,ljfnv.ljqen ofrejhq foriuhe,gouh2;oreu vfo;quhf,voguhqwfouvgh oqufhfvg ouho,vheqr,oguhre ouhg oreuhgv;ouefrbv,ujbfre,uoerf,oqubvh,eoq urbnv.oeurb,ouerf,ouvbner oub;oeurhnbv oueqnrhb,ougb;obue oubwh oubhew,oub:eowubh,oeuhb:oebh Suppose investors expect a Bank to pay a $5 dividend at end of period 1, $12 at the end of period 2, and then plan to sell the stock for a price of $120 per share at the end of period 2. If the risk -ad-justed. discount rate is 10%, the current value of the bank's stock should be: a 125 b. 200 c. 100 d 500 e. 800

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