The Economics of Money, Banking and Financial Markets 4th Edition by Frederic Mishkin

تمرين 16

The current price of a stock Is $65.88. If dividends are expected to be $1 per share for the next five years, and the required return iS₁0%, then what should the price of the stock be in 5 years when you plan to sell it? If the dividend and required return remain the same, and the stock price is expected to increase by $1 five years from now, does the current stock price also increase by $1? Why or why not?