Bc 'n d just paid its annual dividend of $.60 a share. the projected dividends for the next five years are $.30, $.50, $.75, $1.00, and $1.20, respectively. after that time, the dividends will be held constant at $1.40 per share. what is this stock worth today at a discount rate of 14 percent

$7.60

Explanation:

Find PV dividend per year at 14% discount rate;

0.30 / 1.14 = 0.2632

0.50 / 1.14² = 0.3847

0.75 / 1.14³ = 0.5062

1 / (1.14^4) = 0.5921

1.20 / (1.14^5) = 0.6232

Find the PV of the terminal cashflow;

Next, sum up the PVs to find the price of the stock today;

Price = 0.2632 + 0.3847 + 0.5062 + 0.5921 + 0.6232 + 5.2308

= $7.60

im confused need to go into details plz thx

anyone below or above ambitious can tell you. so crowns mean brainliest. getting brainliest means your answer needs a good explanation and the person asking the question can understand your answer easily. so say there's a multiple choice question. you don't just want to say your answer is a, hope it . provide evidence and reasoning so that they know that that is the correct answer. a good explanation should have evidence, good reasoning, and your opinion on why you picked that. you don't want to look up their question on the internet and see if you can answer it. pick questions that you 100% know the answer to, so than that way you can provide a better explanation.

best of luck,

the divergent