You expect a share of stock to pay dividends of $2.20, $2.55, and $2.70 in each

ID: 2699567 • Letter: Y

Question

You expect a share of stock to pay dividends of $2.20, $2.55, and $2.70 in each of the next 3 years. You believe the stock will sell for $34 at the end of the third year.

What is the stock price if the discount rate for the stock is 20%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

What is the dividend yield? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

What is the stock price if the discount rate for the stock is 20%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Explanation / Answer

a Stock price=$24.84256

b Dividend yield=5.26

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You expect a share of stock to pay dividends of $2.20, $2.55, and $2.70 in each

Question

Explanation / Answer

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