Estimating the current value of given stock
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What is the value today of a stock that will pay a dividend of $1.00 one year from now, a $1.50 dividend in year two and a dividend of $2.00 three years from now if its expected price in year three is $25? The stock has a required rate of return of 8%.
$22.35
$23.64
$5.02
$36.95
$4.28
$22.37
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Solution Summary
Solution estimates the current value of the given stock.
Education
- BEng (Hons) , Birla Institute of Technology and Science, India
- MSc (Hons) , Birla Institute of Technology and Science, India
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