Question
You expect a share of stock to pay dividends of $1.10, $1.35, $1.50 in each of the next 3 years. You believe the stock will
You expect a share of stock to pay dividends of $1.10, $1.35, $1.50 in each of the next 3 years. You believe the stock will sell for $22.50 at the end of the third year.
a) calculate the stock price today if the required rate of return for the stock is 9.5%
b) calculate the dividend yield on the stock
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Investment Science
Authors: David G. Luenberger
1st Edition
0195108094, 978-0195108095
