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    duck0131's Avatar
    duck0131 Posts: 1, Reputation: 1
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    #1

    Aug 1, 2014, 05:07 PM
    Finance
    I want to know how to calculate a stock's expected price 3 years from today, whereas stock selling for $35.50 per share, dividend rate of 5.50% per year and the required rate of return on stock is 9.00%. Can you help me?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Aug 2, 2014, 06:01 AM
    If your required rate of return is 9%, and dividends pay 5.5%, the other 3.5% would have to come from capital appreciation. Do you know how to calculate the future value in 3 years at 3.5% interest?
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