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Finance

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The price of Garden Designs, Inc. is now $ 85. The company pays no dividends. Sean Perth expects the price four years from now to be $ 125 a share. Should Sean buy Garden Designs if he wants a 15 percent rate of return? Explain.

  • Finance - ,

    Yes.

    End of year 1 >> 85 * 1.15 = 97.75
    Year 2 >> 91.74 * 1.15 = 112.41

    Complete this chart.

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