Question
You forecast that the dividend per share of Stock X would be $1 in year one, $2 in year two, and $3 in year three.
You forecast that the dividend per share of Stock X would be $1 in year one, $2 in year two,
and $3 in year three. After you receive $3 dividend in year three, you can then sell it at $50
immediately. If the required return rate is 10%, what is the value of the stock today?
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts
10th Edition
1260013820, 978-1260013825
