Question: An analyst estimates that a stock will pay a $3 dividend next year and that it will sell for $45 at year-end. If the

An analyst estimates that a stock will pay a $3 dividend next

An analyst estimates that a stock will pay a $3 dividend next year and that it will sell for $45 at year-end. If the required rate of return is 12%, what is the value of the stock? O $33.54. O36.52 O $42.86. O $43.95.

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!