Fight Finance

Courses  Tags  Random  All  Recent  Scores

Scores
keithphw$5,781.61
oosterhoff$1,667.00
Visitor$464.00
Visitor$450.00
Visitor$380.00
Visitor$327.00
allen$320.00
Visitor$320.00
Visitor$310.00
Visitor$300.00
Visitor$289.43
Visitor$280.00
Visitor$280.00
Apo$270.00
Visitor$260.00
Visitor$260.00
fktragedy$250.00
Visitor$238.61
Visitor$230.00
Visitor$230.00
 

Question 497  income and capital returns, DDM, ex dividend date

A stock will pay you a dividend of $10 tonight if you buy it today. Thereafter the annual dividend is expected to grow by 5% pa, so the next dividend after the $10 one tonight will be $10.50 in one year, then in two years it will be $11.025 and so on. The stock's required return is 10% pa.

What is the stock price today and what do you expect the stock price to be tomorrow, approximately?




Copyright © 2014 Keith Woodward