Question
What would you pay for a share of stock today if it is going to pay $5 dividend next year and be worth $120 in
What would you pay for a share of stock today if it is going to pay $5 dividend next year and be worth $120 in one year? Assume that the required rate of return is 10%.
Group of answer choices
$124.55
$113.64
$114.09
$125.00
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Macroeconomics
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
6th Canadian Edition
978-0321675606
