SNTS's stock dividend at the end of this year is expected To be $2.15, and it is expected to grow at 1.2% per year forever.
SNTS's stock dividend at the end of this year is expected To be $2.15, and it is expected to grow at 1.2% per year forever.
a. If the required rate of return on SNTS stock 15.2% per year what is its intrinsic value? b.If SNTS'current market price is equal this intrinsic value,what is next year's expected price? c.if an investor were to buy SNTS stock now and sell it after receiving the $2.15 dividend a year from now, What is the expected capital gain in percentage terms ?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Authors: Charles Long
1st Edition
0874204305, 978-0874204308
