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Problem:

WSU Inc. is a young company that does not yet pay a dividend. You believe that the company will begin to pay dividends 5 years from now, and that the company will then be worth $50 per share.

Requirement:

Question: If your required rate of return on this risky stock is 20%, what is the stock worth today?

$40
$10
$20.09
$0.00

what is the stock worth today

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169774

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