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Investor buys a stock today assuming to resell it oneyear from now for $70. Dividend expec

Investor buys a stock today assuming to resell it oneyear from now for $70. Dividend expected to be paid in one year is$10. If required rate of return is 25%, how much the investor isready to pay for the stock today? That is, what is the PV of futurecash flows generated by the investor?

 

Dec 04 2019 Read more Less More

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