What are the most the investor would be willing to pay

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Reference no: EM133265166

Question: 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? 1. R30.80 2. R28.57 3. R33.93 4. R33.05

Reference no: EM133265166

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