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You are planning to purchase a stock today that you want to hold for 3 years. You predict that at the end of each year,
You are planning to purchase a stock today that you want to hold for 3 years. You predict that at the end of each year, the stock will pay $10 in dividends. You also predict that you can resell the stock for $200 a share in 3 years. If you require a 16% annual return on your investment, what is the maximum you'd pay for each share of stock today?
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