question archive you study a share that is expected to yield SEK 30 (in today's money value) in dividends per share in all future
you study a share that is expected to yield SEK 30 (in today's money value) in dividends per share in all future
Subject:FinancePrice:2.86 Bought3
you study a share that is expected to yield SEK 30 (in today's money value) in dividends per share in all future. the expected interest rate in the future is 5 percent. what is the reasonable share price?
A: 150 SEK
B: 31,50 SEK
C: 600 SEK
D: about 28,50 SEK
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Since dividend expected is 30 and interest rate is 5%, stock price is 30/.05=600 option C
