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A stock paying $5 in annual dividends currently sells for $80 and has an expected return of 14%. what might investors expect to pay for the stock one year from now?

A stock paying $5 in annual dividends currently sells for $80 and has an expected return of 14%. what might investors expect to pay for the stock one year from now?
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A stock paying $5 in annual dividends currently sells for $80 and has an expected return of 14%. what might investors expect to pay for the stock one year from now?

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User Yllohy
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1 Answer

7 votes
$86.20 14% = $5 + P1 - $80/802 $11.20 = P1 - $75 $86.20 = P1
answered
User Scott Wolf
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8.0k points
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