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please give me more information about how to do this Suppose the stock price of Company A is $ Qt. The expected dividend for the
please give me more information about how to do this
Suppose the stock price of Company A is $ Qt. The expected dividend for the next three years is $5, $11 and $22 per share. The expected price of the stock in the fourth year is $200. The nominal rate of interest is it and is constant for next 3 years. Suppose another company Company B with the current stock price twice that of Company A has the expected dividend of $14, $20 and $40 per share and expected price of the stock in the fourth year is $400. The equity premium is 50% per year of the nominal interest rate for holding the share for another two years. Calculate the current stock price of Company A (5Qt). $Q4 = $ (Round your answer to two decimal places.) Suppose the stock price of Company A is $ Qt. The expected dividend for the next three years is $5, $11 and $22 per share. The expected price of the stock in the fourth year is $200. The nominal rate of interest is it and is constant for next 3 years. Suppose another company Company B with the current stock price twice that of Company A has the expected dividend of $14, $20 and $40 per share and expected price of the stock in the fourth year is $400. The equity premium is 50% per year of the nominal interest rate for holding the share for another two years. Calculate the current stock price of Company A (5Qt). $Q4 = $ (Round your answer to two decimal places.) Step by Step Solution
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