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samualson samualson
wrote...
Posts: 2459
5 years ago
You are considering the purchase of a share of Ranch's common stock. You expect to sell it at the end of 1 year for $32.00. You will also receive a dividend of $2.50 at the end of the year. Ranch just paid a dividend of $2.25. If your required return on this stock is 12%, what is the most you would be willing to pay for it now?
A) $28.57
B) $33.05
C) $20.83
D) $30.80
Textbook 
Foundations of Finance

Foundations of Finance


Edition: 9th
Authors:
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