2.31 The accompanying diagram shows the anticipated cash dividends for Delta Electronics over the next four years. John is interested in buying some shares of this stock for a total of $1000 and will hold them for four years. If John's inter- est rate is known to be 12% compounded annually, what would be the desired (minimum) total selling price for the set of shares at the end of the fourth year? $120 $100 $130 $60 2012 2013 2014 2015 2016 Years P = $1000
2.31 The accompanying diagram shows the anticipated cash dividends for Delta Electronics over the next four years. John is interested in buying some shares of this stock for a total of $1000 and will hold them for four years. If John's inter- est rate is known to be 12% compounded annually, what would be the desired (minimum) total selling price for the set of shares at the end of the fourth year? $120 $100 $130 $60 2012 2013 2014 2015 2016 Years P = $1000
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter27: Investment, The Capital Market, And The Wealth Of Nations
Section: Chapter Questions
Problem 9CQ
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