How to fit the numbers in to come up with this answer

Reference no: EM13276280

Macrohard Company expects to pay a dividend of $6 per share at the end of year one, $8 per share at the end of year two and then be sold for $136 per share. If the required rate on the stock is 20%, what is the current value of the stock? A) $100 B) $105 C) $110 D) $120 I know the answer is B) $105 but can you please show me the full formula for P and how to fit the numbers in to come up with this answer?

Reference no: EM13276280

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