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This morning you purchased one share of stock for 26 the

This morning, you purchased one share of stock for $26. The stock pays $.32 per share each quarter as a dividend. What must the stock price be 1 year from now if you want to earn a total return of 16 percent for the year? = $28.88 0.16 = [Pt + 1 - $26 + (4 × $0.32)] / $26 Pt + 1 = $28.88

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Finance Basics: This morning you purchased one share of stock for 26 the

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Finance Basics: This morning you purchased one share of stock for 26 the

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