Question
You are considering the purchase of a share of Alfa Growth, Inc. common stock. You expect to sell it at the end of one year
You are considering the purchase of a share of Alfa Growth, Inc. common stock. You expect to sell it at the end of one year for $84.54 per share. You will also receive a dividend of $4.96 per share at the end of the next year. If your required return on this stock is 10.62 percent, what is the most you would be willing to pay for Alfa Growth, Inc. common stock now?
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Introduction to Finance Markets, Investments and Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
16th edition
1119398282, 978-1-119-3211, 1119321115, 978-1119398288
