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There is an oil trust that will terminate in 25 months, with no terminal payment.

The oil trust pays quarterly dividends starting one month from now (8 dividends total).

You believe, with the price of oil and the production volume, that you will receive $1.50 per quarter.

What is the most you would pay for a share of this trust if your required rate of return is 8% (annually).

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92172272

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