Question
1.1.Security analyst have forecasted the dividends of Hodges Enterprises for the next 3 years as: Dividend in the first year =$1.20, second year = $1.75,
1.1.Security analyst have forecasted the dividends of Hodges Enterprises for the next 3 years as: Dividend in the first year =$1.20, second year = $1.75, and third year = $2.20.The forecasted selling price in 3 years is $48.50.The rate of return for common stock with a risk level comparable to that of Hodges Enterprises is 14%.What is the value of Hodges common stock?
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss
8th Canadian Edition
01259270114, 9781259270116
