About the stock valuation

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Reference no: EM131934882

Stock A pays a dividend of $3 per share next year. The discount rate is 10%.

Stock Valuation DIV/R

1. If you hold the stock for one year, what is the price for stock A you have to pay now (P0) ?

2. If you hold the stock for two years, what is the price for stock A you have to pay now (P0)?

3. If you hold the stock for three years, what would be the price for stock A three years from now (P3)?

4. If you hold the stock for two years, what would be the price for stock A two years from now (P2)?

Reference no: EM131934882

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