Question

You are trying to determine the fair price to pay for a share of JM Smucker. If you buy this stock, you plan to hold it for at least a year. At the end of the year, you expect to receive a dividend of $5.50 and to sell the stock for $154. The discount rate for JM Smucker stock is 16%. What should be the price of this stock today?

		$99.80
		$137.50
		$144.22
		$151.66

Answer 1