Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:# 30
An investor has examined Target stock and makes
the following predictions for the future:
YEAR
DIVIDEND
1
$1.12
2
3
$1.25 $1.59
4
Submit
$1.88
The investor believes the selling price in four years
will be $85.41. The price of Target stock this
morning is $71.68. What return will the investor earn
if he is correct about future dividends and selling
price?
Answer format: Percentage Round to: 2 decimal
places (Example: 9.24%, % sign required. Will
accept decimal format rounded to 4 decimal places
(ex: 0.0924))
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