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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
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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 $ dividend in three years. You believe you can sell the stock for $ at that time. You require a return of on investments of this risk. What is the maximum you would be willing to pay?
Suppose a stock is expected to pay a $ dividend every month and the required return is with monthly compounding. What is the price?
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