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Find the price at which must sell your share

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Reference no: EM132510093

On December 31, 2019, the share of Amacon Inc. closed at $20. The company subsequently paid a year-end dividend in each of the years 2020 through 2024 as follows:

2020 ?1.0
2021 ?1.0
2022 ?1.0
2023 ?1.25
2024 ?1.25

Suppose you had purchased a share of Amacon stock on Dec 31, 2019. Find the price at which you must sell your share at 2024 year-end in order to realize an annual compounded total rate of return of 10 percent on your initial investment (before commission and taxes)

Reference no: EM132510093

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