Stock valuation based on projected cash flows

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Stock Valuation Based on Projected Cash Flows: Concept Connection 2. The stock of Sedly Inc. is expected to pay the following dividends: Year 1 2 3 4 Dividend $2.25 $3.50 $1.75 $2.00 At the end of the fourth year its value is expected to be $37.50. What should Sedly sell for today if the return on stocks of similar risk is 12%? SOLUTION DONE IN CLASS LAST WEEK: Cash Flow PVF12,n PV $2.25 .8929 $2.01 $3.50 .7972 $2.79 $1.75 .7118 $1.25 $39.50 .6355 $25.10 $31.15

Reference no: EM131074560

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