What is the maximum price the investor should pay

Reference no: EM13278952

An investor plans to buy a common stock and hold it for two years. The investor expects to receive $1.5 in dividend a year and $26 from the sales of the stock at the end of year 2. If the investor wants a 15% return (compound annually), what is the maximum price the investor should pay for the stock today? Show your calculations.

Reference no: EM13278952

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