Question
Security analysts have forecasted the dividends of Hodges Enterprises for the next 3 years as: Dividend in the first year =$1.20, second year = $1.75,
Security analysts have forecasted the dividends of Hodges Enterprises for the next 3 years as:
Dividend in the first year =$1.20, second year = $1.75, and third year = $2.20. The forecasted selling price in 3 years is $48.50. The rate of return for 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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Business Mathematics
Authors: Gary Clendenen, Stanley A Salzman, Charles D Miller
12th Edition
0135109787, 9780135109786
