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What are the most the investor would be willing to pay

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Assume that an investor is considering the purchase of Batho-Pele shares. The investor expects to sell the shares at the end of one year for R35.00. The investor also expects to receive a dividend of R3.00 at the end of the year. The company just paid a dividend of R2.50. If the required rate of return on these shares is 12%, what are the most the investor would be willing to pay for it now?

Reference no: EM133254001

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