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What is the expected share price

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Question - Company currently has 100,000 shares outstanding. At t = 0, its shares are trading at $10 per share. The management just declared a cash dividend of $1 per share, to be paid at t =1. The expected net income at t = 1 is $200,000. Assume a 20% discount rate. Ignore taxes. What is the expected share price at t = 1?

Reference no: EM132777250

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