You expect a share of stock to pay dividends of $1.00, $1.25, and $1.50 in each of the three years. you believe the stock will sell for $20 at the end of the third year.

what is the stock price if the discount rate for the stock is 10%?

$18.095417

Explanation:

To obtain the current stock price, bring all paid dividends and the stock selling price to present value at a 10% rate per year:

*Note that for the dividends paid after the first year, only one period was considered, and for the dividends paid after the second year, only two periods were considered.

The stock price is $18.095417

answer; communities of interest; i believe this is correct, plz check first good luck;

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi