John is looking to value a particular stock that is expected to pay the dividend of $1.15 at the end of each year for at least the next few years. John expects to to be able to sell the stock at the end of year two, just after he receives the dividend in that year, for $65 per share. Given this information, what is the estimate of the stock's price today if the required rate of return is 16.00%.

Answer rating: 100% (QA)

To estimate the stocks price today using the dividend discount model DDM we need to calc... View the full answer