What is the stock price if the discount rate for the stock


You expect a share of stock to pay dividends of $2.10, $2.35, and $2.60 in each of the next 3 years. You believe the stock will sell for $33 at the end of the third year.

a. What is the stock price if the discount rate for the stock is 20%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Stock price $

b. What is the dividend yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Dividend yield %

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Financial Management: What is the stock price if the discount rate for the stock
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