Explore BrainMass

Explore BrainMass

    Stock, Dividend Payment and Forecast of Stock Price

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Cass inc. stock today for $75.00. You forecast no dividend payment this year but two years from today, you expect a $10 dividend. You plan to sell the stock immediately after receiving the dividend. If you want a return of 15% on the investment, how much must your forecast of the stock price be two years from today?

    © BrainMass Inc. brainmass.com June 3, 2020, 7:49 pm ad1c9bdddf
    https://brainmass.com/business/finance/stock-dividend-payment-forecast-stock-price-112934

    Solution Summary

    This brief solution contains calculations to determine the PV and FV to find out the stock price after two years.

    $2.19

    ADVERTISEMENT