Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Coral Inc. is expected to pay an annual dividend of $ 2,10 per share for stocks next year. This year the company paid a dividend

image text in transcribed

Coral Inc. is expected to pay an annual dividend of $ 2,10 per share for stocks next year. This year the company paid a dividend of $ 2 per share. The company applies a fixed growth rate dividend policy. The company's beta is 1,2, the risk-free interest rate is %4, and the market risk premium is %5. Four years from now, what will be the price of the common stock (P4)? A) $ 51.05 B) $ 38,4 C) $ 30,2 100% Alle din D) $ 61,15 E) $ 46,5

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Remittances And International Development

Authors: Sabith Khan, Daisha Merritt

1st Edition

0367521881, 978-0367521882

More Books

Students also viewed these Finance questions

Question

=+12.2. Suppose that A 221, A( A) > 0, and 0 Answered: 1 week ago

Answered: 1 week ago