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Today is 7/21/22. You will buy a share of Bloomberg stock today. You will hold the stock for 4 years. Your expectations are that you
Today is 7/21/22. You will buy a share of Bloomberg stock today. You will hold the stock for 4 years. Your expectations are that you will not receive a dividend at the end of Year 1, but you will receive a dividend of $20 at the end of Year 2, a dividend of $30 at the end of Year 3, and a dividend of $40 at the end of Year 4. In addition, you expect to sell the stock for $200 at the end of Year 4. If your expected rate of return is 20%, how much should you be willing to pay for this stock today?
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