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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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