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A share of stock has a dividend that is expected to grow at a constant perpetual rate. During the next year (t=0 to t=1), the
A share of stock has a dividend that is expected to grow at a constant perpetual rate.
During the next year (t=0 to t=1), the dividend yield is expected to be 3.95%.
The capital gains yield for the next year is expected to be -4.73%.
Dividends are paid at years end.
If the dividend to be paid at the end of the year (at t=1) is expected to be $5.18, what is a fair price for the stock today (t=0)?
Please show me excel formula
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