Suppose that there is a particular stock of a company which is expected to pay...
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Suppose that there is a particular stock of a company which is expected to pay a US dollar 7 dividend next year. According to a market analysis (the results of the analysis is available to everyone), the company is expected to grow at 5% indefinitely. The stock is currently held by investor D and he is now facing some financial trouble, and wants to sell the stock as early as possible for the best available price. There are only 3 investors (investor A, investor B and investor C) who are interested to buy this particular stock, and each of them have varying levels of uncertainty (risk) about this stock. The investor A requires a return of 13% for his investment, investor B requires a 12% return, and investor C requires only 11% return. At what market price the investor D can sell this stock?
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