What is the stock price if the discount rate for the stock

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Reference no: EM131992769

You expect a share of stock to pay dividends of $2.00, $2.05, and $2.40 in each of the next 3 years. You believe the stock will sell for $32.00 at the end of the third year.

a. What is the stock price if the discount rate for the stock is 10%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. What is the dividend yield for year 1? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

c. What will be the dividend yield at the start of year 2? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Reference no: EM131992769

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