Required return on equity investments

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Reference no: EM13806176

What would you pay for a share of ABC Corporation stock today if the next dividend will be $3 per share, your required return on equity investments is 15%, and the stock is expected to be worth $90 one year from now? Hint: PV = FV/(1+r)t

A. $78.26

B. $80.87

C. $82.56

D. $90.00

Reference no: EM13806176

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