Asked by
Jamie Trevino
on Dec 20, 2024Verified
Frazier Enterprises stock is selling for $45 today. You are expecting a dividend of $4 next year and a capital gains yield of 10%. Calculate the price of the stock 1-year from now.
A) $45.00
B) $49.50
C) $52.00
D) $55.50
Capital Gains Yield
The rate of price appreciation on an investment or security, excluding dividends or interest.
Stock Price
The current market price at which a share of a company's stock can be bought or sold.
- Comprehend the fundamentals of the constant growth model in stock valuation.
Verified Answer
AW
Learning Objectives
- Comprehend the fundamentals of the constant growth model in stock valuation.