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Assume that you are an investment analyst. Your client has asked you to assess the...

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Finance

Assume that you are an investment analyst. Your client has asked you to assess the viability of their investment in Shelton Corp. The client expects to hold the investment for one year only and sell it at the end of the holding period. Youve discovered that Shelton Corp. will pay $3 in dividends per share, while the selling price at the end of the holding period can reach $120 per share. The estimated cost of equity capital is 5%. Currently, the stock of Shelton Corp. trades at $118 per share. Will you advice to buy this stock?

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