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You are contemplating the purchase of a stock you will hold for 2 years. You will receive $ 0.88 per year in dividends, and then

You are contemplating the purchase of a stock you will hold for 2 years. You will receive

$ 0.88

per year in dividends, and then you expect to sell it for

$ 20

If the required return is

8 %

what is the most you would pay for the stock?

The most you would pay for the stock is

$___

(Round to the nearest cent.)

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