Question

Ou are considering acquiring a common stock that you would like to hold for one year. you expect to receive both $1.25 in dividends and $32 from the sale of the stock at the end of the year. the maximum price you would pay for the stock today is _____ if you wanted to earn a 10% return.

Answer 1

The answer would be: 32/110 x 100 = 320/11 (29.09090909).


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