Answer:
Step-by-step explanation:
1. Dividends
2. Capital gains
-The discounted present value of the sum of next period's dividend plus next period's stock price
-The discounted present value of all future dividends
P0 = [(Div1)/(1+R)] + [P1/(1+R)]
where Div 1 = expected dividend paid at year's end
P1 = expected price at year's end
R = discount rate
Answer:
$78
Step-by-step explanation:
A share is worth 30% more, so multiply 30% by 60 to get 30% of 60, which is 18. Then, add 18 to 60 because the share is 30% more, and you get 78.