3. Assume that you plan to buy a share of XYZ stock today and to hold it for 2 years. Your expectations are that you will not receive a dividend at the end of Year 1, but you will receive a dividend of $9.25 at the end of Year 2. In addition, you expect to sell the stock for $150 at the end of Year 2.
Question: If your expected rate of return is 16 percent, how much should you be willing to pay for this stock today?© BrainMass Inc. brainmass.com June 4, 2020, 12:23 am ad1c9bdddf
You can two sources of income, one is from buying the stock and selling it at a higher price, and the other is from the ...
stock valuation using ddm