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    maximum stock price

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    What is the maximum stock price that should be paid for a stock today that is expected to consistently pay a $5 quarterly dividend (paid out to the investor) if its price is expected to be $100 in 3 years (12 quarters)? The investor expects a minimum acceptable rate of return (MARR) of 10% with quarterly compounding.

    Need help with solution using excel.

    © BrainMass Inc. brainmass.com October 10, 2019, 3:11 am ad1c9bdddf
    https://brainmass.com/economics/finance/maximum-stock-price-410612

    Solution Summary

    The maximum stock price is attained in this solution.

    $2.19