A stock is expected to pay a dividend of $3.7 one year from now, and the...
A stock is expected to pay a dividend of $3.7 one year from now, and the same amount every year thereafter. The stock's required return (indefinitely) is expected to be 10.3%. The stock's predicted price exactly 5 years from now, P5, should be $_______________.
Homework Answers
P5=Annual dividend/required return
=(3.7/0.103)
which is equal to
=$35.92(Approx).
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