Compute the price of a share of stock that pays a $1 per year dividend and that you expect to be able to sell in one year for $20, assuming you require a 15 return ...

Compute the price of a share of stock that pays a $1 per year dividend and that

Question:

Compute the price of a share of stock that pays a $1 per year and that you expect to be able to sell in one year for $20, assuming you require a 15% return.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...