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Determining the dividend yield-stock price

You expect a share of stock to pay dividends of $1.90, $2.35, and $3.00 in each of the next 3 years. You believe the stock will sell for $26 at the end of the third year.

A. What is the stock price if the discount rate for the stock is 20%?

B. What is the dividend yield?

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Finance Basics: Determining the dividend yield-stock price

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Determining the dividend yield-stock price

Reference No:- TGS0678110

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : What would be the amount of loss of the sold old

Q : Explain the entire amount of business

Q : By how much do firm-s market-book values per share vary

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Determining the dividend yield-stock price

Reference No:- TGS0678110

Recent Questions Asked Finance Basics

Q : What would be the amount of loss of the sold old

Q : Explain the entire amount of business

Q : By how much do firm-s market-book values per share vary

Q : Social contract theory-justice and economic distribution

Q : Determining the dividend yield-stock price

Q : How much was chs companys bad debt expense

Q : Estimating the total return on stock

Q : Explain the useful life of building

Q : What is the balance in retained earnings on december

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