You are contemplating the purchase of a stock you will hold, Finance Basics

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You are contemplating the purchase of a stock you will hold

Question: You are contemplating the purchase of a stock you will hold for 2 years. You will receive $0.85 per year in dividends, and then you expect to sell it for $21. If the required return is 12%, what is the most you would pay for the stock? The most you would pay for the stock is $. (Round to the nearest cent.)

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Finance Basics: You are contemplating the purchase of a stock you will hold

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