Question
Problem 8-15 Value of Dividends and Future Price (LG8-5) A firm is expected to pay a dividend of $2.75 next year and $2.90 the following
Problem 8-15 Value of Dividends and Future Price (LG8-5)
| A firm is expected to pay a dividend of $2.75 next year and $2.90 the following year. Financial analysts believe the stock will be at their price target of $50 in two years. |
| Compute the value of this stock with a required return of 12.7 percent. (Round your answer to 2 decimal places.) |
| Value of stock | $ |
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes, Arshad Ahmad, Jordan Fortino
7th Canadian Edition
1259650650, 978-1259650659
