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can someone solve this please? Question 3 Art Shivakumar, an analyst, is examining the stock of General Electric (NYSE: GE) as of the beginning of
can someone solve this please?
Question 3 Art Shivakumar, an analyst, is examining the stock of General Electric (NYSE: GE) as of the beginning of 2013. He notices that the consensus forecast by analysts is that the stock will pay a 4.7 dividend per share in 2014 and a 5 dividend in 2015. Art expects the price of the stock at the end of 2015 to be 250. He has estimated that the required rate of return on the stock is 11 percent. Assume all dividends are paid at the end of the year. Using the dividend discount model, what is the value of GE stock at the end of 2014? A. 108 B. 225 C. 211 D. 230Step by Step Solution
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