You are considering buying a share of stock in XYZ Corporation. At the end of years 1, 2, and 3 the stock will pay you a dividend of $15 . In addition, at the end of the third year you expect to sell the share of stock for $100 . If the interest rate is 3%, how much is the share of XYZ stock worth to you today?
a. $123.14
b. $133.94
c. $137.96
d. $145.00
b
You might also like to view...
Computers are a complement to computer software. Suppose the price of a computer falls. Simultaneously, suppose that the number of companies selling computer software decreases
How do these changes affect the price and quantity of computer software?
The aggregate expenditure line shows total planned spending at each _____
a. consumption level b. investment level c. income level, holding the price level constant d. price level, holding the level of income constant e. interest rate, holding the price level constant
The function that banks perform by obtaining funds from households, businesses, and governments and lending these funds to other households, businesses, and governments is known as
A. liquidity intermediation. B. financial intermediation. C. fiscal intermediation. D. lending intermediation.
When voluntary exchange takes place, both parties gain from the exchange
Indicate whether the statement is true or false