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Particular stock provides a constant dividend

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A particular stock provides a constant dividend, d every period. Show that the time t = 0 price of a stock Po, will be the same whether an investor chooses to purchase the stock (ex-dividend) and hold forever, or purchase (ex-dividend) and hold for one period, selling at price P1 the day after the t = 1 dividend payment.

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Reference no: EM133274263

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