You Are Considering Purchasing Ordinary Shares in AMP Limited

question 58

Essay

You are considering purchasing ordinary shares in AMP Limited.You anticipate that the company will pay dividends of $5.00 per share next year and $7.50 per share in the following year.You also believe that you can sell the ordinary shares two years from now for $30.00 per share.If you require a 14% rate of return on this investment,what is the maximum price that you would be willing to pay for a share of AMP?

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Definitions:

Data Collisions

A phenomenon where two or more data packets transmitted at the same time on a network segment collide, causing a disruption in communication.

Ring Networks

A network configuration where each device is connected to two other devices, forming a circular data path.

File Server

A server that stores and manages files for network users or that acts as a storehouse for files that users can download.

Manages Files

Refers to the process or systems used to organize, store, and access files and documents in a computing environment.