You own $100,000 worth of Smart Money stock. One year from now, you will receive a dividend

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You own $100,000 worth of Smart Money stock. One year from now, you will receive a dividend of $3.15 per share. You will receive a dividend of $3.27 two years from now. You will sell the stock for $106 per share three years from now. Dividends are taxed at the rate of 20 percent. Assume there is no capital gains tax. The required aftertax rate of return is 9 percent. How many shares of stock do you own?

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Corporate Finance Core Principles And Applications

ISBN: 9781260571127

6th Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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