What is the maximum price that you would pay for a share

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Reference no: EM133127726

Question: You are considering the purchase of AMDEX Company shares. You anticipate that the company will pay dividends of $2.00 per share next year and $2.25 per share the following year.

You believe that you can sell shares for $17.50 each two years from now ex-dividend. If your required rate of return is 12 percent, what is the maximum price that you would pay for a share?

Reference no: EM133127726

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