You just purchased a stock for 21.43. If you expect the dividend in one year to be $ 2.25 and you expect it to grow at a constant rate each year of 5%, for how much should you sell the stock in three years so that you will earn 15.5% RoR on the stock?

You just purchased a stock for 21.43. If you expect the dividend in one year to be $ 2.25 and you expect it to grow at a constant rate each year of 5%, for how much should you sell the stock in three years so that you will earn 15.5% RoR on the stock?

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Description: You just purchased a stock for 21.43. If you expect the dividend in one year to be $ 2.25 and you expect it to grow at a constant rate each year of 5%, for how much should you sell the stock in three years so that you will earn 15.5% RoR on the stock

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 12P

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