You believe that a stock with the same market risk as the S&P ITSX will sell at

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You believe that a stock with the same market risk as the S&P ITSX will sell at year-end at a price of $50. The stock will pay a dividend at year-end of $2. What price will you be willing to pay for the stock today?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Fundamentals of Corporate Finance

ISBN: 978-1259024962

6th Canadian edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim

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