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X = 2 ! ! Suppose you are thinking of purchasing the stock of XYZ Electronics, Inc. In addition to the dividend and price from

X=2!!
Suppose you are thinking of purchasing the stock of XYZ Electronics, Inc. In addition to the dividend and price from year one and two you expect it to pay a $5.29 dividend in three years. You believe you can sell the stock for $33.06 at that time. You require a return of x% on investments of this risk. What is the maximum you would be willing to pay?
Suppose a stock is expected to pay a $1.00 dividend every month and the required return is x% with monthly compounding. What is the price?
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