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You plan to buy some shares of a company. The management of this company forecasts the following year-end dividends for the next three years. D
You plan to buy some shares of a company. The management of this company forecasts the following year-end dividends for the next three years.
D1 =2.00
D2 =2.35
D3 =2.60
Suppose you plan to sell the shares at a price of $45 after D3 has been paid. If your required rate of return is 9.75%, what is the maximum price you would be willing to pay for one share today?
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