What is the present value of the stock


Question: Bill Beta bought a stock with that will yield a dividend of $1.50 at the end of the first year. He expects the dividends will grow 5% a year and he thinks he can sell the stock at the end of year four for $45.00. What is the present value of the stock now if the discount rate is 10%?

Solution Preview :

Prepared by a verified Expert
Accounting Basics: What is the present value of the stock
Reference No:- TGS01891206

Now Priced at $25 (50% Discount)

Recommended (94%)

Rated (4.6/5)