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Caterpillar stock has an expected return is 12.72% per year (not a holding period return) and Caterpillar is expected to pay a $3.05 Dividend indefinitely
Caterpillar stock has an expected return is 12.72% per year (not a holding period return) and Caterpillar is expected to pay a $3.05 Dividend indefinitely (forever). Find the price of Caterpillar stock if the dividend is paid quarterly and the next dividend will be paid later today.
The answer given was 98.96, but I'm not sure how to get there.
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