Problemyou are considering a share of edies common stock, Ask an Expert

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Problem:

You are considering a share of Edie's common stock. You expect to sell it at the end of one year for $32.00. You will also receive a divided of $2.50 at the end of the year. Edie just paid a dividend of $2.25. If your required return on this stock is 12%,

Required:

Question 1: What is the most you should pay for it?

Note: Explain all steps comprehensively.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91149467

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