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  3. 2. suppose you forecast the dividend for the next

2. Suppose you forecast the dividend for the next two years are $1 and $2...

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Finance

2. Suppose you forecast the dividend for the next two years are $1 and $2 respectively. After the second year, the dividend will grow at a constant rate of 5 percent per year. The required return is 25 percent. What is the value of the stock in the second year?
Group of answer choices
5.25
5.53
7.57
10.5
11.5

Answer & Explanation Solved by verified expert
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