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Homework answers / question archive / An investor expects to receive 5 TL of dividend income from an equity investment and will probably sell that equity after 1 year at a price of 40 TL

An investor expects to receive 5 TL of dividend income from an equity investment and will probably sell that equity after 1 year at a price of 40 TL

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An investor expects to receive 5 TL of dividend income from an equity investment and will probably sell that equity after 1 year at a price of 40 TL. The expected rate of return for this investor is 25%. What should be the price that the investor would pay for the equity right now?

A)28

B)36

C)45

D)56

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