What is the price you would be willing to pay a share right

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Reference no: EM132027564

You are thinking of purchasing the stock of Moore Oil, Inc. and you expect it to pay a $2 dividend next year and you believe that you can sell the stock for $14 right after you get the dividend next year.

If you require a holding period return (HPR) of 20% on this investment, what is the price you would be willing to pay a share right now?

Reference no: EM132027564

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