You want to invest in a stock that pays $6.00 annual cash dividends for the next five years.At the end of the five years,you will sell the stock for $30.00.If you want to earn 10% on this investment,what is a fair price for this stock if you buy it today?
A) $41.37
B) $40.37
C) $22.75
D) $18.63
Correct Answer:
Verified
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