You want to invest in a stock that pays $1.50 annual cash dividends for the next six years.At the end of the six years,you will sell the stock for $18.50.If you want to earn 7.5% on this investment,what is a fair price for this stock if you buy it today?
A) about $18.45
B) about $15.29
C) about $22.45
D) about $19.03
Correct Answer:
Verified
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