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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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