Homework Answers
2. The value of this stock would be :
= $3/1.1 + $3.1/1.1^2 + $3.25/1.1^3 + $3.5/1.1^4 + ($3.85 + $50)/1.1^5
= $43.5582
= $43.56 ( rounded off to two decimal places)
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