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You make an investment today of $35.00 to buy stock in a company. It pays a Dividend of $1.35 annually at the end of each
You make an investment today of $35.00 to buy stock in a company. It pays a Dividend of $1.35 annually at the end of each year for the next three years. You then sell the stock for $46.50 per share at the end of the three years. You want a return of 9.5% based on the Capital Asset Pricing Model (CAPM). What is your Net Present Value (NPV)? $13.46. $11.50 $3.80. $0.00
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