Blue Lake Hardware stock is expected to be priced at $336.23 in 1 year, pay a dividend of $11.5 9 in 1 year, and pay a dividend of $12.37 in 2 years. The stock has a risk premium of 8.47 percent, the risk-free rate is 5.67 percent, and inflation is expected to be 3.81 percent. What is the current price of Blue Lake Hardware stock? Input instructions: Round your answer to the nearest cent (so 2 decimal places). Input instructions: Round your answer to the nearest cent (so 2 decimal places).

Blue Lake Hardware stock is expected to be priced at $336.23 in 1 year, pay a dividend of $11.5 9 in 1 year, and pay a dividend of $12.37 in 2 years. The stock has a risk premium of 8.47 percent, the risk-free rate is 5.67 percent, and inflation is expected to be 3.81 percent. What is the current price of Blue Lake Hardware stock? Input instructions: Round your answer to the nearest cent (so 2 decimal places). Input instructions: Round your answer to the nearest cent (so 2 decimal places).

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 8P: A stock is trading at $80 per share. The stock is expected to have a yearend dividend of $4 per...

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