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How much would pay for the stock today

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Reference no: EM132543705

Question 1: You are planning to purchase the stock of PT. Bahagia and you expect it to pay a dividend of Rp30 in 1 year, Rp42.5 in 2 years, and Rp60 in 3 years. You expect to sell the stock for Rp1,000 in 3 years. If your required return for purchasing the stock is 12 percent, how much would you pay for the stock today?

Select one:

Option a. Rp772.40

Option b. Rp754.50

Option c. Rp815.15

Option d. Rp856.65

Reference no: EM132543705

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