An investor plans to buy a common stock and hold it for two, Financial Management

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An investor plans to buy a common stock and hold it for two

An investor plans to buy a common stock and hold it for two years. The investor expects to receive $1.5 in dividend a year and $26 from the sales of the stock at the end of year 2. If the investor wants a 15% return (compound annually), the maximum price the investor should pay for the stock today is roughly

A). $24 B). $28 C). $22 D). $32 E). $26

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Financial Management: An investor plans to buy a common stock and hold it for two

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Financial Management: An investor plans to buy a common stock and hold it for two

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