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.
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.