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Required return on the stock investment is 10%, what should the stock sell for today? a. $7.46 b. $28.91 c. $46.33 d. $15.63 ANS: A D1 = 2.78(1.04) = 2.89 D2 = 2.89(1.04) = 3.01 D3 = 3.01(1.04) = 3.13 P = 2.89/1.1 + 3.01/1.1^2 + 3.13^3 = 7.46 ... Retrieve Document
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05 Consumption, Saving, And Investment, Part 1
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Is It Time To Rebalance Your Retirement Portfolio?
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