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How much would you pay for a share of stock paying a dividend (cash payout C) of $4 to be paid in one year, a known selling p
Consider the one-period valuation model for computing stock prices. Suppose you are considering buying Wal-Mart stock, which
Consider the Gordon Growth model. Suppose you are considering buying a stock and holding it for 50 years. In addition, suppos
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Given dividend chas = $4 in one year Selling Price in one yearp)= $50 Expeckleded Similar assets 4% Po = P + Di (strate) (Itr© B Given considering buying a Stack and holding it for 50-Yeay . Suppose most recent dividend on to Stocke was- Expecteded gTotal = 2.28151426395% (1.08547 = 31.2793 powe PV = pvX (1+5) = 65xp-08550) = 65811-08559) = lol The talal value today is = =

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