3. You expect a share of EconNews.Com to sell for $65 in one year from now and you expect they will pay a $2 dividend pe

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

3. You expect a share of EconNews.Com to sell for $65 in one year from now and you expect they will pay a $2 dividend pe

Post by answerhappygod »

3 You Expect A Share Of Econnews Com To Sell For 65 In One Year From Now And You Expect They Will Pay A 2 Dividend Pe 1
3 You Expect A Share Of Econnews Com To Sell For 65 In One Year From Now And You Expect They Will Pay A 2 Dividend Pe 1 (72.02 KiB) Viewed 46 times
3. You expect a share of EconNews.Com to sell for $65 in one year from now and you expect they will pay a $2 dividend per share. What should you pay for the stock today if the interest rate on U.S. government bonds (a safe asset) is 5% and you require a 3% risk premium to hold the stock. Enter your answer as a numerical response rounded to the nearest cent (ie. 53.48 or $78.10 not "Fifty-three dollars and forty-eight cents")
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply