Question
What would you pay for a share of ABC Corporation stock today if the next dividend will be $3 per share, your required return on
What would you pay for a share of ABC Corporation stock today if the next dividend will be $3 per share, your required return on equity investments is 15%, and the stock is expected to be worth $90 one year from now? (Remember the stock price today is the PV of its future cash flows, i.e., dividends and the future stock price, properly discounted)
| A. $78.26 | |
| B. $80.87 | |
| C. $82.56 | |
| D. $90.00 |
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The Handbook Of Energy Trading
Authors: Stefano Fiorenzani, Samuele Ravelli, Enrico Edoli
1st Edition
1119953693, 978-1119953692
