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The dividend on Soviet Motors common stock will be $6 in 1 year, $6.50 in 2...

The dividend on Soviet Motors common stock will be $6 in 1 year, $6.50 in 2 years, and $7 in 3 years. You know that you can sell the stock for $75 in 3 years. You require a 10% return on your investment. How much would you be willing to pay for a share of this stock?

a. 88.50

b. 64.65

c. 65.40

d. 72.43

e. none of the above

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Answer #2

Therefore, Share Price = $73.43

answered by: anonymous
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