You want to invest in a stock that pays $6.00 annual cash dividends for the next five
Question:
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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Related Book For
Entrepreneurial Finance
ISBN: 978-0538478151
4th edition
Authors: J . chris leach, Ronald w. melicher
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