Current forecasts are for Amenuveve Company to pay dividends of Ghc2, Ghc2.24, and Ghc2.50 over the...

Current forecasts are for Amenuveve Company to pay dividends of Ghc2, Ghc2.24, and Ghc2.50 over the next three years,respectively.At the end of three years you anticipate selling your stock at a market price of Ghc84.48.What is the price of the stock given a 12% expected return?

Expert Solution

Year	Cash flow	× factor@ 12.00%	Present value
0	$ -	1.0000	$ -
1	$ 2.00	0.8929	$ 1.79
2	$ 2.24	0.7972	$ 1.79
3	$ 2.50	0.7118	$ 1.78
3	$ 84.48	0.7118	$ 60.13

			$ -
			$ -
			$ -
			$ -
			$ -
Price		3.1136	$ 65.48

Stock price is 65.48

jeff jeffy answered 2 years ago

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