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You intend to purchase Bama, Inc., common stock at $52.75 per share, hold it one year, and sell after a dividend of $6.50 is paid.

  1. You intend to purchase Bama, Inc., common stock at $52.75 per share, hold it one year, and sell after a dividend of $6.50 is paid. How much will the stock price have to appreciate if your required rate of return is 16 percent?

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