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You are buying a share of UTD stock today. UTD is expected pay a dividend of $ 1 . 5 0 per share at the

You are buying a share of UTD stock today. UTD is expected pay a
dividend of $1.50 per share at the end of the year 2 and a $2.50
per share at the end of the year 3. You expect UTD 's stock price
to be $20.00 at the end of year 3(right after the $2.50 dividend
is paid). UTD 's equity cost of capital is 10%.a. What is the price of UTD stock per share today?b. What will be the price one would expect to be able to sell
UTD stock for at the end of year 2(right after the dividend of
$1.50 is paid)?c. Suppose you plan on purchasing UTD stock at the end of year
2, right after the $1.50 dividend is paid. You then plan on selling
your stock at the end of year 3, right after the $2.50 dividend is
paid. What is your return from holding UTD stock?

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