1. Next year, the price of a stock is expected to be $2200 and the stock will...

Question:

1. Next year, the price of a stock is expected to be $2200 and the stock will pay a $55 The interest rate is 10%.
Based on the Dividend-Discount model, what is the current price of this stock?
2. A stock has an annual of $10 and it is expected NOT to grow. It is believed the stock will sell for $100 one year from now, and an investor has a discount (interest) rate of 6% (0.06).
The dividend-discount model predicts the stock's current price should be: ?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...