Question
An analyst has made the following estimate of Company Z's future dividends. In year 5, Company Z is expected to stop fluctuating and begin paying
An analyst has made the following estimate of Company Z's future dividends. In year 5, Company Z is expected to stop fluctuating and begin paying a constant dividend of $ 1.67 If the required rate of return is 13 % what is the stock's price?
| Year | Dividend |
|
| 1 | $2.45 | |
| 2 | $3.02 | |
| 3 | $1.35 | |
| 4 | $2.94 | |
| 5 | $1.67 |
The current price of Company Z's stock is
$
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Fundamentals Of Investments
Authors: Bradford Jordan, Thomas Miller
4th Edition
0073314978, 9780073314976
