Question: A stock is expected to pay its first $ 8 1 dividend in 9 years from now. The dividend is expected to be paid annually

A stock is expected to pay its first $81 dividend in 9 years from now. The dividend is expected to be paid annually forever and grow by 0% pa. The discount rate is 2% pa. Estimate the current stock price. The current stock price should be:
Select one:
a. $3,322.41
b. $3,388.86
c. $3,456.64
d. $3,537.64
e. $4,050x
 A stock is expected to pay its first $81 dividend in

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!