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A stock is expected to pay its first $2.9 dividend in 3 years from now (t=3). The dividend is expected to be paid annually forever
A stock is expected to pay its first $2.9 dividend in 3 years from now (t=3). The dividend is expected to be paid annually forever and grow by -2% pa (note the negative sign). The discount rate is 8% pa. Estimate what the stock price will be in 2.25 years from now. The stock price at time 2.25 is expected to be: Select one: a. $27.7113 b. $29.4428 c. $29.5634 d. $31.9284 e. $34.4827
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