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You expect a share of stock to pay dividends of $1, $1.25, and $1.50 in each of the next 3 years. You believe the stock
You expect a share of stock to pay dividends of $1, $1.25, and $1.50 in each of the next 3 years. You believe the stock will sell for $20 at the end of the third year. a. What is the stock price if the discount rate for the stock is 10%? (Round your answer to the nearest cent.) Stock price $ b. What is the dividend yield? (Round your answer to 2 decimal places.) Dividend yield
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