Question: Questions #7 and #8 use the following setup. Intel will pay a quarterly dividend of $0.32 for each quarter in the next year. And, you

Questions #7 and #8 use the following setup.

Intel will pay a quarterly dividend of $0.32 for each quarter in the next year. And, you expect its stock price to be $53.86 by the end of next year. The (annual) required return is 14%, with quarterly compounding.

How much are you willing to pay for Intel's stock today?

Hint: you need to convert the annual rate into the quarterly rate by dividing it by 4.

Following Question #7, how much can you sell the stock for immediately after its 2nddividend is paid out?

Assume the (annual) required return is 14%, with quarterly compounding.

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