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Your broker offers to sell you some shares of Longstreet & Co. common stock that paid a dividend of $2 last year. You expect the
Your broker offers to sell you some shares of Longstreet & Co. common stock that paid a dividend of $2 last year. You expect the dividend to grow at the rate of 5% per year for the next three years and if you buy the stock you plan to hold it for 3 years and then sell it.
- Is the value of the stock dependent upon how long you plan to hold it? In other words, if your planned holding period were 5 years rather than 3 years, would this affect the value of the stock today, P0.
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