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Peace
Lv 5
Peace asked in Science & MathematicsMathematics · 5 years ago

maximum price for a share today equation?

please show working out

Update:

you receive a share and want to sell it at the end of the year, $2 dividend and $13 from the sale at the end of the year.

maximum price you would pay if the rate of return was 8.5% p.a.

thanks

2 Answers

Relevance
  • ?
    Lv 7
    5 years ago

    Are you willing to take a loss?

    If so, pay whatever you like for it, there is no maximum.

  • Bryce
    Lv 7
    5 years ago

    (2+13)/0.085=$176.47

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