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    Stocks

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    Problem 7
    How much would you expect to pay for a stock with the following characteristics?
    Expected quarterly dividends: $0.70
    Expected stock price in 3 years: $15.00
    Required market rate of return: 12%
    You have no expectations regarding dividends after 3 years.

    Problem 8
    How much would you expect to pay for a stock that is expected to pay $1.00 quarterly dividends indefinitely? The expected market return is 14%.

    How much would you expect to pay for the stock from the above problem if the dividend is expected to grow at 6% each year?

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    https://brainmass.com/business/finance/expect-pay-stock-following-characteristics-3799

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    Solution Summary

    The expert determines what is expected to pay for a stock with the characteristics. The expected quarterly dividends are given.

    $2.49

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