The price of abc is currently 50 at the end of each of the, Ask an Expert

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The price of ABC is currently 50. At the end of each of the next four years, ABC will pay a dividend of 5. Roger wants to purchase a four year prepaid forward contract for one share of this stock. Assuming that the last dividend is paid just before the delivery of the stock, and the annual effective interest rate is 4% determine the price of the prepaid forward.

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Financial Management, Finance

Category:- Financial Management
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