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ceceudc
May 14, 2007, 08:39 AM
Integrated Potato chips paid $1 per share dividened yesterday. You expect the dividened to grow stedily at a rate of 4 percent per year.

a. what is the expected dividend in each of the next 3 years
b. if the discount rate of the stock is 12 percent, 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 payments will you reecieve? What is the present value of those payments? Compare it to B.

NeedKarma
May 14, 2007, 08:44 AM
Weird, this almost looks like a copy/paste of someone's homework.

https://www.askmehelpdesk.com/finance-accounting/read-me-first-expectations-homework-help-board-25444.html