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Home / Questions / 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?

Dec 04 2019 View more View Less

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