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John is looking to value a particular stock that is expected to pay the dividend of...

John is looking to value a particular stock that is expected to pay the dividend of $1.45 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 $55 per share. Given this information, what is the estimate of the stock's price today if the required rate of return is 11.00%.

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Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

Home nert Page Layout Formulas Data Review View dd-Ins Cut ta copy ▼ Σ AutoSum ー E ゴWrap Text B า 프 . Ej-., Δ. : r_一 逻锂函Merge & Center. $, % , 弼,8 Conditional Format CeInsert Delete Format Formatting as Table Styles2 Clear Sort &Find & Format Painter Clipboard Alignment Number Cells Edting CH177 CE CG CI CM CN CO 165 166 167 168 169 170 PRICE OF STOCK TODAY PV FACTOR @11% PV OF ALL CASH FLOW 1 D1 2 D2 +P2 0.9009 1.31 45.82 0.8116 56.45 (1.45 55) 172 173 174 175 176 PRICE TODAY 47.12 178 179 180 181 182 183 4HKE CAPM UTILITY, SH beta bond c future INDEX INTL CAP BUD LEASING PV, FV, ANNUITY DIR cleanYIELD bond stru WACC RES1 ex di erences: GZ38 福 130% 03:50 04-01-2019 Cl 445 16+

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