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Show Numerically That Investment Horizon Has No Bearing on Current

question 3

Essay

Show numerically that investment horizon has no bearing on current stock price.For your illustration assume investment horizons of 3 versus 5 years and the following facts: The stock is correctly priced at $40.00,has a required return of 17%,a growth rate of 7%,and has just paid a $3.74 dividend.


Definitions:

Transverse

Relating to or extending across something at a right angle.

Coronal

refers to a direction in anatomy denoting a plane that divides the body into frontal (anterior) and back (posterior) parts.

Horizontal

Relating to or situated at a right angle to the vertical; parallel to the ground or to the horizon.

Generic Name

The common or non-brand name of a drug, as opposed to its trademarked brand name.

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