Determining the dividend yield-stock price


You expect a share of stock to pay dividends of $1.90, $2.35, and $3.00 in each of the next 3 years. You believe the stock will sell for $26 at the end of the third year.

A. What is the stock price if the discount rate for the stock is 20%?

B. What is the dividend yield?

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Finance Basics: Determining the dividend yield-stock price
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