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You want to buy a share of Pear's stock. As a shareholder, you can expect an annual dividend of $3.50 and $3.60 at the end
You want to buy a share of Pear's stock. As a shareholder, you can expect an annual dividend of $3.50 and $3.60 at the end of years 1 and 2, respectively. Also, you can sell Pear's stock for $25.00 at the end of year 2.
With the required rate of return 12%, how much are you willing to pay to buy this stock now?
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