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Nosybook Company will pay a dividend of $2.65 per share in year one, $3.45 per share in year two, and $4.25 per share in year
Nosybook Company will pay a dividend of $2.65 per share in year one, $3.45 per share in year two, and $4.25 per share in year three. In year four, you think that Facebook, Inc. will buy Nosybook Company at $58.00 per share and all Nosybook Company stock owners will be paid $58.00 per share at the closing. The required return rate is 8.4%. So, what is the present value of a Nosybook stock?
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