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    Given a required return of 15%, what should the stock sell for today

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    Biogenetics, Inc. plans to retain and reinvest all of their earnings for the next 30 years. Investors believe that in the beginning of year 31, the firm will begin to pay a dividend of $12.00 per share. The dividend is expected to remain at the same level thereafter. Given a required return of 15%, what should the stock sell for today?

    A) $1.05
    B) $1.21
    C) $1.39
    D) $42.00
    E) $80.00

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    https://brainmass.com/business/beta-and-required-return-of-a-project/given-a-required-return-of-15-what-should-the-stock-sell-for-today-66653

    Solution Summary

    This job evaluates stock sell.

    $2.19

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