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At the end of the four years you will sell the stock for 20

You want to invest in a stock that pays $5.00 annual cash dividends for the next four years. At the end of the four years, you will sell the stock for $20. If you want to earn 12% on this investment, what is a fair price for this stock if you buy it today?

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Finance Basics: At the end of the four years you will sell the stock for 20

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Finance Basics: At the end of the four years you will sell the stock for 20

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