What is the most likely price for the individual shares

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Consider an investment that will pay in total dividends $100,000 in year one, $300,000 in year two and $600,000 in year three. After the final dividend is made the shares become worthless. Assume there are 25,000 shares being issued and the benchmark rate is 5%. What is the most likely price for the individual shares?

Reference no: EM13890749

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