Calculate the current one-year forward price for stock


You are given the following information about Stock XYZ:

i. The current price of the stock is 35 per share.

ii. The expected continuously compounded annual rate of return is 8

iii. The stock pays semi-annual dividends of 0.32 per share, with the next dividend to be paid two months from now.

The continuously compounded annual risk-free interest rate is 4%.

Calculate the current one-year forward price for stock XYZ.

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Financial Management: Calculate the current one-year forward price for stock
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