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You know that the price of Blossom, Inc., stock will be $29 exactly one year from today. Today the price of the stock is $28.

You know that the price of Blossom, Inc., stock will be $29 exactly one year from today. Today the price of the stock is $28. Determine what must happen to the price of Blossom, Inc., today in order for an investor to generate a 16 percent return over the next year. Assume that Blossom does not pay dividends.

The price should (select between drop or rise) to $____________.

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