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Investor buys a stock today assuming to resell it one year fromnow for $70. Dividend expec

Investor buys a stock today assuming to resell it one year fromnow for $70. Dividend expec

Investor buys a stock today assuming to resell it one year fromnow for $70. Dividend expected to be paid in one year is $10. Ifrequired rate of return is 25%, how much the investor is ready topay for the stock today? That is, what is the PV of future cashflows generated by the investor?

Abhinav 04-Dec-2019

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