Question
A companys stock has quarterly dividends that are expected to be as shown in the table for the next 6 quarters. At the end of
A companys stock has quarterly dividends that are expected to be as shown in the table for the next 6 quarters. At the end of the 6th quarter, the stock is expected to sell for $32. If the required rate of return on the stock is 9%, how much would you pay for the stock today?
| T | CF(T) |
| 1 | $0.25 |
| 2 | $0.25 |
| 3 | $0.25 |
| 4 | $0.60 |
| 5 | $0.60 |
| 6 | $0.60 |
A. $30.33
B. $1.72
C. $30.76
D. $29.47
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Corporate Finance For Dummies
Authors: Michael Taillard
1st Edition
1118412796, 978-1118412794
