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An investor has examined Target stock and makes the following predictions for the future: YEAR 1 2 3 4 DIVIDEND $1.00 $1.32 $1.53 $1.79 The
An investor has examined Target stock and makes the following predictions for the future:
YEAR | 1 | 2 | 3 | 4 |
---|---|---|---|---|
DIVIDEND | $1.00 | $1.32 | $1.53 | $1.79 |
The investor believes the selling price in four years will be $85.72. The price of Target stock this morning is $71.48. What return will the investor earn if he is correct about future dividends and selling price?
Answer Format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required) ( will accept decimal format rounded to 4 decimal places (ex: 0.0924))
PLEASE EXPLAIN!
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