What is the maximum price erica should pay

Reference no: EM13267585

What is the maximum price Erica should pay for Rangoon Corp. common stock if her required return is 5% and she expects to sell the stock in one year for $50 per share, immediately after she receives a $.50 per share dividend?

$50.00

$48.10

$48.00

$45.00

$40.73

Reference no: EM13267585

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