A stock paying $5 in annual dividends currently sells for $80 and has an expected return of 14%. what might investors expect to pay for the stock one year from now?

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asked Jan 11, 2018 55.4k views

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A stock paying $5 in annual dividends currently sells for $80 and has an expected return of 14%. what might investors expect to pay for the stock one year from now?

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Yllohy asked

by Yllohy

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$86.20 14% = $5 + P1 - $80/802 $11.20 = P1 - $75 $86.20 = P1

Scott Wolf answered Jan 17, 2018

by Scott Wolf

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A stock paying $5 in annual dividends currently sells for $80 and has an expected return of 14%. What might investors expect to pay for the stock one year from now after the next dividend has been paid

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