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    Stock Valuation and Present Value

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    1. Buffett stock will pay a dividend this year of $2.40 per share. Its dividend yield is 8%. At what price is the stock selling?

    2. You need $700 in 5 years. If you earn 5% interest on your funds, how much will you need to invest today in order to reach your savings goal?

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    Solution Preview

    1. Dividend yield = Expected Dividend/Stock Price
    Stock Price = Expected ...

    Solution Summary

    The solution has two questions relating to stock valuation and present value calculations