please show way and formulas used. An investor plans to hold Newcos stock...
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please show way and formulas used.
An investor plans to hold Newcos stock for 2 years. Newco expects to pay its common equityshareholders, $0.25 per share over the next 2years. The investor anticipates Newcos stock will close the end of that time period at $40 per share. Given a rate of return of 10%, what is the value of Newcos common stock at the end of the 2-year time period?
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