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What is the maximum price

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Question - You are considering the purchase of Kobe Company stock. You anticipate that the company will pay dividend at P2.25 per share next year and P2.50 per share the following year. You believe that you can sell the stock for P18.50 per share two years from now. If your required rate of return is 12.50%, what is the maximum price that you would pay for a share?

Reference no: EM132971178

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