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Stock, Dividend Payment and Forecast of Stock Price

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Cass inc. stock today for $75.00. You forecast no dividend payment this year but two years from today, you expect a $10 dividend. You plan to sell the stock immediately after receiving the dividend. If you want a return of 15% on the investment, how much must your forecast of the stock price be two years from today?

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Solution Summary

This brief solution contains calculations to determine the PV and FV to find out the stock price after two years.

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