Question
I do not need the formula. Nor the answer of this. What I need is the procedure to solve this example on the Texas Instrument
I do not need the formula. Nor the answer of this. What I need is the procedure to solve this example on the Texas Instrument BA II Plus Calculator. I want to learn how to solve this on the calculator, not by using the formula with paper and pencil, I already know that. Also, I already got this answer wrong here on Chegg, please read the question completely before answering.
Suppose you are purchasing the stock of Moore Oil, Inc.
You expect it to pay a $2 dividend in Year 1, and $2.10 dividend in Year 2
You believe the stock sells for $14.70 at the end of Year 2
You require a return of 20% on investments of this risk. What is the maximum you would be willing to pay? Following the previous examples, what if you decide to hold the stock for three years?
Assume that D still grows at 5%, and the dividend yield is unchanged (a.k.a. D/P unchanged and P also grows at 5%)
Find the PV of the expected Cash Flows
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