Question
Rylan Industries is expected to pay a dividend of $5.20 per year for the next four years. If the current price of Rylan stock is
Rylan Industries is expected to pay a dividend of $5.20 per year for the next four years. If the current price of Rylan stock is $32.63, and Rylan's equity cost of capital is 14%, what price would you expect Rylan's stock to sell for at the end of the four years?
How to calculate this without using a financial calculator?
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Investments Analysis and Management
Authors: Charles P. Jones
12th edition
978-1118475904, 1118475909, 1118363299, 978-1118363294
