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What would be you maximum investment on a corporate stock with the following information: Dividend just paid is 3 USD Dividend paid after one year
- What would be you maximum investment on a corporate stock with the following information:
- Dividend just paid is 3 USD
- Dividend paid after one year is 5 USD during 3 years
- Dividend paid starting year 5 is 10 USD knowing there no dividend will be paid at year 4
- Interest rate is 15 percent
- How much would you expect as dividend in seven year from now if you have just been paid 5 USD as dividend and you know that dividends are expected to grow at a constant rate of 3 percent?
- How much would you pay on a stock knowing that the first dividend will be 4 USD expected to grow at 5 percent and the next dividend will be paid four years from now expected to grow at 6 percent per year forever. Interest rate is 10 percent.
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