What is the most you would be willing to pay for it


Suppose the goddess tells you the following information about a stock:

Year Dividend

1 $1

2 $4

3 $4

She also tells you that the stock will sell for $40 at three years from now. If you require a 11% return to invest in this stock, what is the most you would be willing to pay for it today? answer to 2 decimal places, for example 49.12.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What is the most you would be willing to pay for it
Reference No:- TGS02678328

Expected delivery within 24 Hours