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


You expect a share of stock to pay dividends of 1.70, $1.95, and $2.20 in each of the next 3 years. You believe the stock will sell for $29.00 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 for year 1? (Do not round intermediate calculations. Enter your answer as a percent founded to 2 decimal places.)

Dividend Yield   %

C. What will be the dividend yield at the start of year 2? (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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