How much would you pay for the stock today

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Reference no: EM131065716

You are planning to purchase the stock of Ted's Sheds Inc. and you expect it to pay a dividend of $3 in 1 year, $4.25 in 2 years, and $6.00 in 3 years. You expect to sell the stock for $100 in 3 years. If your required return for purchasing the stock is 12 percent, how much would you pay for the stock today? (Please calculate the arithmetic solution and SHOW YOUR WORK)

Reference no: EM131065716

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