What is the expected dividend per share is three years

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Reference no: EM131969402

1. If the current dividend (D0) is $3 is expected to grow at 5% per year then what is the expected dividend per share is 3 years? (express your answer in dollars and cents. Do not include the $ symbol)

2. Consider a 6month futures contract on the S&P 500 index. Suppose that the stock index provides a continuously compounded dividened yield of 1.4% per year, that the current index is 2109, and that the continuously compounded risk-free interest rate is 0.1% per year. What is the future price?

Reference no: EM131969402

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