Determine the shares of stock


Question: You own $100,000 worth of MB stock. One year from now, you will receive a dividend of USD 2 each share. You will receive a $4 dividend 2 years from now. You will sell the stock for USD 50 each share three years from now. Dividends are taxed at the rate of 28 percent. Suppose there is no capital gains tax. The required rate of return is 15 percent. Determine how many shares of stock do you own?

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Finance Basics: Determine the shares of stock
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