Calculaing present value of a stock


What is the value today of a stock that will pay a dividend of $1.00 one year from now, a $1.50 dividend in year two and a dividend of $2.00 three years from now if its expected price in year three is $25? The stock has a required rate of return of 8%.

$22.35
$23.64
$5.02
$36.95
$4.28
$22.37

 

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Finance Basics: Calculaing present value of a stock
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