You expect a share of stock to pay dividends of 110 135 and


You expect a share of stock to pay dividends of $1.10, $1.35, and $1.60 in each of the next 3 years. You believe the stock will sell for $21 at the end of the third year.

a. What is the stock price if the discount rate for the stock is 10%?

b. What is the dividend yield?

 

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Finance Basics: You expect a share of stock to pay dividends of 110 135 and
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