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Bill Beta bought a stock with that will yield a dividend of $1.50 at the end of the first year

Bill Beta bought a stock with that will yield a dividend of $1.50 at the end of the first year. He expects the dividends will grow 5% a year and he thinks he can sell the stock at the end of year four for $45.00. What is the present value of the stock now if the discount rate is 10%?

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Dividend at the end of first year = 1.50
Dividend at the end of second year = ...

Solution Summary

Bill Beta bought a stock with that will yield a dividend of $1.50 at the end of the first year. He expects the dividends will grow 5% a year and he thinks he can sell the stock at the end of year four for $45.00. What is the present value of the stock now if the discount rate is 10%?

$2.19