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The next three annual dividends paid by Oxygen Optimization stock are expected to be 5.3 dollars...

The next three annual dividends paid by Oxygen Optimization stock are expected to be 5.3 dollars in one year, 3.84 dollars in two years, and 4.09 dollars in three years. The price of the stock is expected to be 66.72 dollars in two years. The expected annual return for the stock is 9.23 percent. What is the current price of one share of Oxygen Optimization stock?

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Answer #1

D1 D2 Stock price in 2-Years $ 5.30 $ 3.84 $ 66.72 PVIF @ 9.23% Present value 0.915 $ 4.85 0.838 $ 3.22 0.838 $ 55.92 Current

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