You are thinking about buying a stock and holding it for 3 years.  You expect that the stock will pay a dividend of $1.37 in 1 year, $2.12 in two years, and $3.18 in three years.  You expect to sell for $94.57 in 3 years.  If the required return is 13.67%, what is the value of the stock.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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  1. You are thinking about buying a stock and holding it for 3 years.  You expect that the stock will pay a dividend of $1.37 in 1 year, $2.12 in two years, and $3.18 in three years.  You expect to sell for $94.57 in 3 years.  If the required return is 13.67%, what is the value of the stock.

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