A security analyst has forecast the dividends of hodges


A security analyst has forecast the dividends of Hodges Enterprises for the next three years. His forecast is D1=$1.50; D2=$1.75; D3=$2.20. He has also forecast a price in three years of $48.50. The rate of return for similar risk common stock is 14%. What is the value of Hodges common stock? Please show all work, including formula used.

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Financial Management: A security analyst has forecast the dividends of hodges
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