A certain stock has the following stream of expected dividends:
t : 1 – 2 3 4 5 6 – 7
—————————————————-
CFt : $1.00 $1.10 $1.30 $1.60 $2.00
What is the fair value of this stock if the required return is 15% and the stock will be sold after the dividend is received in Year 7 for an estimated $50.00?
What is the fair value of this stock if the required return is 15% and the stock will be sold after the dividend is received in Year 7 for an estimated $50.00?
No comments:
Post a Comment