Mr. & Mrs. Jones plan to buy stock to earn the funds needed for their son's college education. They will sell the stock in 7 years to pay tuition. What amount should they use as an estimate for the stock price when they sell in year 7?
A) The discounted value of the dividends for years 1 through 6.
B) The discounted value of all the dividends from year 7 on.
C) The discounted value of all dividends from year 1 on.
D) The price that is currently quoted in the stock market.
Correct Answer:
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