Find the today stock price

Reference no: EM1354904

Assume that you plan to by shares XYZ stocks today and hold it for 2 years.

Your expectations are that you will not receive a dividend at the end of year 1, but you will receive a dividend of $9.25 at the end of year 2. In addition you expect to sell the stock for $150 at the end of year 2.

Question: if you expected rate of return is 16% how much should you be willing to pay for the stock today.

Reference no: EM1354904

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