You have decided to purchase common stock of Bennett Manufacturing and hold it for 7...
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You have decided to purchase common stock of Bennett Manufacturing and hold it for 7 years. The directors of the company just announced that they expect to pay an annual cash dividend of $4.00 per share for at least the next 8 years. In your research on target prices for this stock, several analysts say that Bennett common shares should be worth around $80 at the end of seven years. In order to earn 12% return on this investment, how much would you be willing to pay for this stock?
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