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arlik [135]
3 years ago
8

Zephyr Inc. sells wind based systems for generating electricity. The company pays no dividends, but you estimate the stock will

be worth $50 per share 5 years from now and you require a 15% rate of return for stock investments of this type. What price should you be willing to pay for this stock?
Business
1 answer:
kari74 [83]3 years ago
7 0

Answer:

The price you should be willing to pay for this stock= $24.86

Explanation:

To estimate the stock will be worth $50 per share 5 years from now and you require a 15% rate of return for stock investments of this type . Therefore  50= xX1.15^5  by solving this equation we have  x= 24.86  . The price you should be willing to pay for this stock= $24.86

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