Purchase Solution

Price of Stock Calculated

Not what you're looking for?

Ask Custom Question

Company A's stock is selling for $45 today. You are expecting a dividend of $4 next year and a capital gains yield of 10%. Calculate the price of the stock 1-year from now.

----------------
I have no idea where to start on this problem, I was thinking to use the FV fucntion in Excel but it seems pieces are missing, please assist.

Purchase this Solution

Solution Summary

The solution explains how to calculate the price of stock 1 year from now.

Purchase this Solution


Free BrainMass Quizzes
Introduction to Finance

This quiz test introductory finance topics.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.