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Shares in Brothers Grimm, Inc., manufacturers of gingerbread houses, are expected to...

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susan-greene | eNotes Newbie

Posted March 21, 2013 at 6:20 PM via web

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Shares in Brothers Grimm, Inc., manufacturers of gingerbread houses, are expected to pay a dividend of $5 in one year and to sell for $100 per share at that time. How much should you be willing to pay today per share of Grimm if the safe rate of interest is 5 percent and you believe that investing in Grimm carries no risk?

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