Ms. Muna wish to purchase shares of ABC. She is expecting a dividend of 0.125 for the next 5 years and she is expecting to sell the shares at OMR 12 at the end of the fifth year. The required rate of return is expected to be 12%. Calculate the present price of the share.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Ms. Muna wish to purchase shares of ABC. She is expecting a dividend of 0.125 for the next 5 years and
she is expecting to sell the shares at OMR 12 at the end of the fifth year. The required rate of return is
expected to be 12%.
Calculate the present price of the share.
Transcribed Image Text:Ms. Muna wish to purchase shares of ABC. She is expecting a dividend of 0.125 for the next 5 years and she is expecting to sell the shares at OMR 12 at the end of the fifth year. The required rate of return is expected to be 12%. Calculate the present price of the share.
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