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What price would you be willing to pay

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Question - Suppose CVX Corporation will pay a dividend of $5.16 per share at the end of this year and $5.16 per share next year. You expect CVX Corporation stock price to be $120 in two years. If CVX Corporation equity cost of capital is 10%. What price would you be willing to pay for a share of CVX Corporation stock today, if you planned to hold the stock for two years?

Reference no: EM132967620

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