Question
The stock of Sedly Inc. is expected to pay the following dividends. Year 1 2 3 4 Dividend $2.15 $3.40 $1.75 $2.20 At the end
The stock of Sedly Inc. is expected to pay the following dividends.
| Year | |||||
| 1 | 2 | 3 | 4 | ||
| Dividend | $2.15 | $3.40 | $1.75 | $2.20 | |
At the end of the fourth year, its value is expected to be $37.50. What should Sadly sell for today if the return on stocks of similar risk is 12.657%? Round PVF values in intermediate calculations to four decimal places. Round the answer to two decimal places.
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The Financial Services Marketing Handbook
Authors: Evelyn Ehrlich
2nd Edition
1118065719, 978-1118065716
