Computation of number of stocks and stock price

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Reference no: EM1310114

You own $100,000 worth of MB stock. One year from now, you will receive a dividend of $2 per share. You will receive a $4 dividend two years from now. You will sell the stock for $50 per share three years from now. Dividends are taxed at the rate of 28%. Assume there is no capital gains tax. The required rate of return is 15%. How many shares of stock do you own?

Reference no: EM1310114

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