You Are Considering Acquiring a Common Stock That You Would

question 31

Multiple Choice

You are considering acquiring a common stock that you would like to hold for one year.You expect to receive both $2.50 in dividends and $28 from the sale of the stock at the end of the year.The maximum price you would pay for the stock today is _____ if you wanted to earn a 15% return.

• A)$23.91
• B)$24.11
• C)$26.52
• D)$27.50
• E)None of the options

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