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SBBoyer
Jun 28, 2007, 02:25 PM
Stock values. Intergrated Potato Chips paid $1 per share dividend yesterday. You expect the dividend to grow steadily at a rate of 4% per year.
a. What is the expected dividend in eachof the next 3 years
b. It the discount rate for the stock is 12%, at what price will the stock sell?
c. What is the expected stock price 3 years from now?
d. If you buy the stock and plan to hold it for 3 years, what paymnets will you recieve? what is the present value of those payments?