Solved: The required rate of the return from stocks in this risk, Finance Basics

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The required rate of the return from stocks in this risk

McMahon Corp. will pay a dividend of $7 per year for the next 10 years, and then stop paying dividends forever. The required rate of the return from stocks in this risk class is 14 percent.

What is the present value of the dividend at the end of year 7?

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Finance Basics: The required rate of the return from stocks in this risk

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