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You expect a share of stock to pay dividends of $1.80, $2.05, and $2.20 in each of the next 3 years. You believe the stock
You expect a share of stock to pay dividends of $1.80, $2.05, and $2.20 in each of the next 3 years. You believe the stock will sell for $24.00 at the end of the third year. a. What is the stock price if the discount rate for the stock is 20%? b. What is the dividend yield for year 1? c. What will be the dividend yield at the start of year 2?
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