Question
An investor has examined Target stock and makes the following predictions for the future: YEAR 1 2 3 4 DIVIDEND $1.00 $1.35 $1.68 $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 | $1.35 | $1.68 | $1.79 |
The investor believes the selling price in four years will be $86.44. The price of Target stock this morning is $70.21. 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))
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Financial Institutions And Markets
Authors: Jeff Madura
10th International Edition
0538482176, 9780538482172
