A stock is expected to pay its first $51 dividend in 6 years from now. The dividend is expected to be paid annually forever and grow by 0% pa. The discount rate is 7% pa. Éstimate the current stock price. The current stock price should be: Select one: a. $728.5714 b. $570.4614 c. $519.4614 d. $485.4779 e. $453.7177.
A stock is expected to pay its first $51 dividend in 6 years from now. The dividend is expected to be paid annually forever and grow by 0% pa. The discount rate is 7% pa. Éstimate the current stock price. The current stock price should be: Select one: a. $728.5714 b. $570.4614 c. $519.4614 d. $485.4779 e. $453.7177.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A stock is expected to pay its first $51
dividend in 6 years from now. The dividend is
expected to be paid annually forever and
grow by 0% pa. The discount rate is 7% pa.
Éstimate the current stock price. The current
stock price should be: Select one: a. $728.5714
b. $570.4614 c. $519.4614 d. $485.4779 e.
$453.7177.
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