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Assume that you will buy DX common stock today. The dividend on the stock will be $7 at the end of in 1 year, $7
Assume that you will buy DX common stock today. The dividend on the stock will be $7 at the end of in 1 year, $7 at the end of 2 years, $10 at the end of 3 years, and $25 at the end of 4 years. You know that you can sell the stock for $100 at the end of 4 years. (HINT: These are all of the cash flows.) You require a 10% return on your investment. How much would you be willing to pay for a share of this stock?
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