Question
The stock of Sedly Inc. is expected to pay the following dividends. Year 1 2 3 4 Dividend $2.20 $3.50 $1.70 $2.00 At the end
The stock of Sedly Inc. is expected to pay the following dividends.
| Year | |||||
| 1 | 2 | 3 | 4 | ||
| Dividend | $2.20 | $3.50 | $1.70 | $2.00 | |
At the end of the fourth year its value is expected to be $37.70. What should Sedly sell for today if the return on stocks of similar risk is 11%? Round PVF values in intermediate calcualtions to four decimal places. Round the answer to two decimal places.
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Applied Quantitative Finance
Authors: W.; T. Kleinkow; G. Stahl Hardle
1st Edition
3540434607, 978-3540434603
