Question
White Mountain Health stock pays quarterly dividends and has an expected annual return of 6.12 percent. The stock is expected to have a price of
White Mountain Health stock pays quarterly dividends and has an expected annual return of 6.12 percent. The stock is expected to have a price of 70.08 dollars in 3 months from today and is expected to have a price of 70.94 dollars in 6 months from today. What is the current price of White Mountain Health stock if the firm is expected to pay quarterly dividends forever and the quarterly dividend in 3 months from today is expected to be 2.9 dollars? The next three annual dividends paid by White Mountain Health stock are expected to be 3.41 dollars in one year, 7.28 dollars in two years, and 2.08 dollars in three years. The price of the stock is expected to be 77.58 dollars in two years. The expected annual return for the stock is 16.94 percent. What is the current price of one share of White Mountain Health? Over the next 5 years, White Mountain Health is expected to pay a dividend of 6.97 dollars in 1 year, 2.49 dollars in 2 years, 2.99 dollars in 3 years, 3.33 dollars in 4 years, and 3.77 dollars in 5 years. The stock is expected to be priced at 116.05 dollars in 4 years and has an expected return of 12.5 percent. What is the price of White Mountain Health expected to be in 5 years?
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