A stock is expected to pay its first $0.8 dividend in 2 years from now (t=2). The dividend is expected to be paid annually forever and grow by 0% pa. The discount rate is 7% pa. Estimate what the stock price will be in 3.25 years from now. The stock price at time 3.25 is expected to be: Select one: а. $14.2393 b. $12.4372 С. $11.6235 d. $11.4286 е. $10.8631 Clear my choice

A stock is expected to pay its first $0.8 dividend in 2 years from now (t=2). The dividend is expected to be paid annually forever and grow by 0% pa. The discount rate is 7% pa. Estimate what the stock price will be in 3.25 years from now. The stock price at time 3.25 is expected to be: Select one: а. $14.2393 b. $12.4372 С. $11.6235 d. $11.4286 е. $10.8631 Clear my choice

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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