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Over the next 5 years, Blue Eagle Technology stock is expected to pay a dividend of...

Over the next 5 years, Blue Eagle Technology stock is expected to pay a dividend of 2.43 dollars in 1 year, 4.12 dollars in 2 years, 7.45 dollars in 3 years, 2.38 dollars in 4 years, and 4.91 dollars in 5 years. The stock is expected to be priced at 102.65 dollars in 4 years and has an expected return of 13.15 percent. What is the price of Blue Eagle Technology stock expected to be in 5 years?

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Answer #1

Price of the stock in 5 years=Price in 4 years*(1+expected return)-dividend in year 5=102.65*(1+13.15%)-4.91=111.24

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