A stock's current price is 202 and it has declared dividends of $0.7/share each to be paid

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A stock's current price is 202 and it has declared dividends of $0.7/share each to be paid in 38 days, 158 days, and 278 days from now. Price a 300-day forward contract assuming that the risk free rate is 2%.

Provide the forward price rounded to two decimals?

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0538479738

18th edition

Authors: Earl K. Stice, James D. Stice

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Posted Date: May 12, 2023 11:26 PM

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A stock's current price is 202 and it has declared dividends of $0.7/share each to be paid

Question:

Expert Answer:

To calculate the forward price of the stock we can use the formula Forward Price Sp... View the full answer

Intermediate Accounting

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