Problem: What is the value today of a stock that will pay a dividend of $1.00 one year from now, a $1.50 dividend in year two and a dividend of $2.00 three years from now if its expected price in year three is $25? The stock has a required rate of return of 8%.
- $22.35
- $23.64
- $5.02
- $36.95
- $4.28
- $22.37