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Finance calculation help please?


an investors buys 8000 shares in a company. if each share can be expected to pay $1.40 every quarter forever, and the investor wants to earn 14.1% pa on their investment, how much should be paid for the parcel of shares?

8000shares * $1.4/quarter *4 quarters = annual earnings

Annual earnings / 0.141 = amount to pay = $317,730.50

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