Share
Explore BrainMass

Stock Valuation / Present Value

3. 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?

4. 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?

Solution Preview

3. 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? ...

Solution Summary

The solution explains how to calculate the price of the stock and the present value needed for a given future amount.

$2.19