What is a fair price for the stock if buy today

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Question 1: You want to invest in a stock that pays $5 annual cash dividends for the next four years. At the end of the four years, you will sell the stock for $20. If you want to earn 12% on this investment, what is a fair price for this stock if you buy it today?

a) 40

b) 43.9

c) 27.9

d) 25.42

Reference no: EM132501934

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