A company whose current stock price is $43.44 has been paying a quarterly dividend of $0.77 per
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A company whose current stock price is $43.44 has been paying a quarterly dividend of $0.77 per quarter. What is the annual yield? What should be the price of an 8 month forward contract on this stock if it is now assumed that dividends will accrue continuously at this yield? The risk-free rate is 3 %. What is the value of this forward contract after 5 months if the stock price is $48 then.
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Dividend yield The quarterly dividend yield is 077 4344 00177 or 177 The annual dividend yield is 17...View the full answer
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