1. Buffett stock will pay a dividend this year of $2.40 per share. Its dividend yield is 8%. At what price is the stock selling?
2. You need $700 in 5 years. If you earn 5% interest on your funds, how much will you need to invest today in order to reach your savings goal?© BrainMass Inc. brainmass.com June 3, 2020, 8:26 pm ad1c9bdddf
1. Dividend yield = Expected Dividend/Stock Price
Stock Price = Expected ...
The solution has two questions relating to stock valuation and present value calculations