Problemfinancial analysts expect a stock to sell for 50 one, Ask an Expert

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Problem:

Financial Analysts expect a stock to sell for $50 one year from now and pay $4 dividend during the next year.

Requirement:

Question: What market price do you expect for this stock if similar stocks are yielding 10%?

Note: Please explain comprehensively and provide step by step solution.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91172716

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