Question: QUESTION 9 Potomac Optical stock is expected to pay a dividend of $1.93 in 1 year and a dividend of $3.82 in 2 years. The

 QUESTION 9 Potomac Optical stock is expected to pay a dividend

QUESTION 9 Potomac Optical stock is expected to pay a dividend of $1.93 in 1 year and a dividend of $3.82 in 2 years. The stock is expected to be priced at $32.32 in 1 year and at $30.31 in 2 years. What is the current price of Potomac Optical stock? The stock's dividend is paid annually and the next dividend is expected in 1 year a. $32.43 (plus or minus $0.05) b. $31.61 (plus or minus $0.05) c. $30.70 (plus or minus 50.05) d. $34.37 (plus or minus $0.05) e. None of the above is within $0.05 of the correct

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!