Question
Security analyst have forecasted the dividends of Hodges Enterprises for the next 3 years as: Dividend in the first year = $1.20, seconds year =
Security analyst have forecasted the dividends of Hodges Enterprises for the next 3 years as:
Dividend in the first year = $1.20, seconds year = $1.75, and third year = $2.20. The forecasted selling price in 3 years is $48.50. The rate of return for the common stock with a risk level comparable to that of Hodges Enterprises is 14%. What is the value of Hodges common stock?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
