Question
ABC stock has a share price of $55 today. All rates of interest are 4% per annum on a quarterly compounded basis. ABC is scheduled
ABC stock has a share price of $55 today. All rates of interest are 4% per annum on a quarterly compounded basis. ABC is scheduled to pay the following dividends per share over the next year: a dividend of $1.50 per share in 3 months and a dividend of $1.50 per share in nine months. Derive the forward price of the stock for delivery in one year.
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Public Finance In Canada
Authors: Harvey S. Rosen, Ted Gayer, Jean-Francois Wen, Tracy Snoddon
5th Canadian Edition
1259030776, 978-1259030772
