question archive A shareholder of PPP company expects to receive a dividend of $2 per share at the end of year 1, $3 per share at the end of year 2, and then sell the shares for $32 per share at the end of year 2
A shareholder of PPP company expects to receive a dividend of $2 per share at the end of year 1, $3 per share at the end of year 2, and then sell the shares for $32 per share at the end of year 2
Subject:FinancePrice: Bought3
A shareholder of PPP company expects to receive a dividend of $2 per share at the end of year 1, $3 per share at the end of year 2, and then sell the shares for $32 per share at the end of year 2. If the required rate of return on the stock is 10%, what is the current value of the stock?
\a. $31.58 b. $28.20 c. $30.74 d. $29.18
