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Need some assistance on what I am doing wrong when calculating the value of stock using the H-Model. I am getting a value of 34.70
Need some assistance on what I am doing wrong when calculating the value of stock using the H-Model. I am getting a value of 34.70 for P(3) when it should be 34.69. I am calculating 2.50/(.15-.05). Also, my present value calculation does not seem correct for D1 through D3 or the final PV for P93). I am calculating the PV of D(1) as 2.50*((1+ .15)^-1. I should get P(0) as 29.39 butI am getting 29.40.
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