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Determining the year-end dividend payment

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You are considering the purchase of a stock that will make annual payments of $2.50 per year for the next four years. At the end of the fourth year, you believe that you will be able to sell your stock for $42.00, just before the year-end dividend payment is made. How much would you be willing to pay for the stock now if the fair rate of return is 11 %?

Reference no: EM133069087

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