Multiple Choice
A share of stock will pay a dividend of $20 in one year,and will be sold for an expected price of $500 at that time.If the current one-year interest rate is 5%,the current price of the stock will be approximately equal to
A) $100.
B) $495.
C) $500.
D) $525.
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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