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You can purchase a number of shares of stock today for $20 per share. Each share guarantees a $2 dividend (receipts begin one year after the date of purchase) over the five years you plan to hold the stock. Your annual time preference rate is 12%. In order to break-even at the end of five years, what amount must the stock be sold for at that time. Can you do this with a graphing calculator?

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Accounting Basics, Accounting

Category:- Accounting Basics
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