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deircr3
Lv 4
Common stock valuation. 10 points?
You intend to purchase Marigo common stock at $50 per share, hold it for 1 year and then sell it after a dividend of $6 is paid. How much will the stock price have to appreciate for you to satisfy your required rate of return of 15%?
1 Answer
Relevance
- PolygonLv 77 years ago
Return at year's end with 15% rate of return = 50*0.15= = $7.50
required appreciation = $7.50 - $6.0 = $1.50
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