You want to invest in a stock that pays $6.00 annual cash dividends for the next five

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You want to invest in a stock that pays $6.00 annual cash dividends for the next five years. At the end of the five years, you will sell the stock for $30.00. If you want to earn 10% on this investment, what is a fair price for this stock if you buy it today?

a. $41.37

b. $40.37

c. $22.75

d. $18.63

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Entrepreneurial Finance

ISBN: 978-0538478151

4th edition

Authors: J . chris leach, Ronald w. melicher

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