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Keidis Industries will pay a dividend of $3.05, $4.15, and $5.35 per share for each of...

Keidis Industries will pay a dividend of $3.05, $4.15, and $5.35 per share for each of the next three years, respectively. In four years, you believe that the company will be acquired for $48.00 per share. The return on similar stocks is 10.5 percent. What is the current stock price?

Multiple Choice

  • $46.30

  • $42.32

  • $56.53

  • $48.73

  • $42.99

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Answer #1

Current value of share is present value of all dividends or cash flows expected in future for stock.

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