How much should agnes pay for this stock

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Reference no: EM131814690

Agnes wants to purchase common stock of New Frontier Inc. and hold it for four years - The directors of the company just announced that they expect to pay an annual cash dividend of $4.00 per share for the next four years. Agnes believes that she will be able to sell the stock for $40 at the end of four years.

In order to earn 12% on this investment, how much should Agnes pay for this stock.

Reference no: EM131814690

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