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I dont understand how the formula was altered to get that answer. what do i have to divide in order to get .40? A stock
I dont understand how the formula was altered to get that answer. what do i have to divide in order to get .40?
A stock is priced at $20 today. If you expect it to sell for $22 in one year, immediately following its next annual dividend payment, and its discount rate is 12%, what is the stock's next dividend payment expected to be (D1)? A. $0.36 B. $2.00 C. $0.40 D. Dividend cannot be determined P0=1+RD1+P1 20=(D1+22)/(1+0.12)=$0.40Step by Step Solution
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