For a share of stock, the projected selling price one year from now (P1) is $125.00, the projected dividend payment one year from now (is $4.25, and the investors' required rate of re tu m for the stock is 14%. The estimated selling price of this stock is:
A. $109.65.
B. $120.75.
C. $113.38.
D. none of the above
Answer:C
For a share of stock, the projected selling price one year from now (P1) is $125.00, the projected dividend payment one year from now (is $4.25, and the investors' required rate of re tu m for the stock is 14%. The estimated selling price of this stock is:
A. $109.65. B. $120.75. C. $113.38. D. none of the above