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  1. business
  2. accounting
  3. you expect a share of stock to pay dividends of $1

You expect a share of stock to pay dividends of $1.30, $1.55, and $1.60 in...

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Accounting

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You expect a share of stock to pay dividends of $1.30, $1.55, and $1.60 in each of the next 3 years. You believe the stock will sell for $22.00 at the end of the third year. a. What is the stock price if the discount rate for the stock is 20%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Stock price b. What is the dividend yield for year 1? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Dividend yield % c. What will be the dividend yield at the start of year 2? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Dividend yield %

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