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Caramel Corporation is expected to pay quarterly dividends (starting in three months) of $0.25 per share. The dividend amount is expected to remain constant for
Caramel Corporation is expected to pay quarterly dividends (starting in three months) of $0.25 per share. The dividend amount is expected to remain constant for the foreseeable future . Given the risk inherent in Caramel shares, the required expected return for investors is 4% per quarter compounded quarterly.
A) what would be the price of one share of Caramel stock?
B) Given the data from the previous question on Caramel corporation, what would be the price of one share of its stock today if the next dividend is in one month, not three months?
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