How much would you be willing to pay for the stock today

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Reference no: EM131087662

Assume you plan to buy shares of XYZ stock today and hold it for two years. You expect to receive no dividend at the end of year one but except to receive a dividend of $12.00 at the end of the second year and then sell the stock for $125. If your expected rate of return is 11%, how much would you be willing to pay for the stock today?

Reference no: EM131087662

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