stock price as pv of future CFs

Fill in the missing words

What should an investor be willing to pay for a stock with the following anticipated dividend stream: $.5 in 1 year, $.6 in 2 years, $.4 in 3 years. Assume the investor anticipates selling this stock in 3 years for $25 and requires a 6% return.

The investor should expect to pay _______

stock price as pv of future CFs Fill in the missing words What should an investor be willing to pay for a stock with the following anticipated dividend stream: $.5 in 1 year, $.6 in 2 years, $.4 in 3 years. Assume the investor anticipates selling this stock in 3 years for $25 and requires a 6% return. The investor should expect to pay Check