Electric Pink stock is expected to pay a dividend of $1.09 in 1 year. The stock is currently priced at $22.64, is expected to expected to be priced at $27.37 in 2 years. What is the dividend in 2 years expected to be for Electric Pink stock?The stock's dividend is paid annually and the next dividend is expected in 1 year. $1.27 (plus or minus 10 cents) $2.26 (plus or minus 10 cents) $6.62 (plus or minus 10 cents) $1.18 (plus or minus 10 cents) the answer cannot be obtained based on the given information

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 12P
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Electric Pink stock is expected to pay a dividend of $1.09 in 1 year. The stock is currently priced at $22.64, is expected to be priced at $25.36 in 1 year, and is
expected to be priced at $27.37 in 2 years. What is the dividend in 2 years expected to be for Electric Pink stock?The stock's dividend is paid annually and the
next dividend is expected in 1 year.
$1.27 (plus or minus 10 cents)
$2.26 (plus or minus 10 cents)
$6.62 (plus or minus 10 cents)
$1.18 (plus or minus 10 cents)
the answer cannot be obtained based on the given information
Transcribed Image Text:Electric Pink stock is expected to pay a dividend of $1.09 in 1 year. The stock is currently priced at $22.64, is expected to be priced at $25.36 in 1 year, and is expected to be priced at $27.37 in 2 years. What is the dividend in 2 years expected to be for Electric Pink stock?The stock's dividend is paid annually and the next dividend is expected in 1 year. $1.27 (plus or minus 10 cents) $2.26 (plus or minus 10 cents) $6.62 (plus or minus 10 cents) $1.18 (plus or minus 10 cents) the answer cannot be obtained based on the given information
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