Assume that you plan to buy a share of xyz stock today and


Assume that you plan to buy a share of XYZ stock today and to hold it for 2 years. Your expectations are that you will not receive a dividend at the end of Year 1, but you will receive a dividend of $9.35 at the end of Year 2. In addition, you expect to sell the stock for $150 at the end of Year 2. If your expected rate of return is 15%, how much should you be willing to pay for this stock today? 

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Financial Management: Assume that you plan to buy a share of xyz stock today and
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