Multiple Choice
What is the most an investor would be willing to pay for a stock that will pay $210 next year and nothing before or after?
A) $200 regardless of the interest rate.
B) $200 if the interest rate is 5 percent per year.
C) $190.91 if the interest rate is 10 percent per year.
D) B and C.
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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