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You have just purchased a share of stock for $20.29. The company is expected to pay...

You have just purchased a share of stock for $20.29. The company is expected to pay a dividend of $0.61 per share in exactly one year. If you want to earn a 9.7% return on your​ investment, what price do you need if you expect to sell the share immediately after it pays the​ dividend?

The price one year from now should be? (Round to the nearest​ cent.)

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Answer #1

Current Price (Po) = 20.29 Di = .61 Return Required (Re) = 9.7% We selling Price. know that, P = Re = Dit P, - Po Po .087 = 6

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