Question
A firm is expected to pay a dividend of $2.95 next year and $3.10 the following year. Financial analysts believe the stock will be at
| A firm is expected to pay a dividend of $2.95 next year and $3.10 the following year. Financial analysts believe the stock will be at their price target of $60 in two years. |
| Compute the value of this stock with a required return of 12.9 percent.(Do not round intermediate calculations. Round your final answer to 2 decimal places.) |
| Value of stock | $ |
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown, Sanford J. Leeds
11th Edition
1305262999, 1305262997, 035726164X, 978-1305262997
