CHAPTER 8 STOCK VALUATION
When we solve this equation, we find that the stock price in Year 4 is 69.86 times as large as the dividend today. Now we need to find the equation for the stock price today. The stock price today is the PV of the dividends in Years 1, 2, 3, and 4, plus the PV of the Year 4 price. So: ................
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