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An investor has examined Target stock and makes the following predictions for the future: YEAR 1 2 3 4 DIVIDEND $1.20 $1.38 $1.59 $1.76 The
An investor has examined Target stock and makes the following predictions for the future:
YEAR | 1 | 2 | 3 | 4 |
---|---|---|---|---|
DIVIDEND | $1.20 | $1.38 | $1.59 | $1.76 |
The investor believes the selling price in four years will be $86.07. The price of Target stock this morning is $71.43. What return will the investor earn if he is correct about future dividends and selling price?
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