Klaus toys just paid its annual dividend of $1.40. the required return is 16 percent and the dividend growth rate is 2 percent. what is the expected value of this stock five years from now?

The expected value (EV) is a probable value for a given investment. By calculating expected values, investors can decide the scenario most likely to give them their preferred result.

Formula for expected value is:

Expected value = stock return’s annual dividend divided by (required return – dividend growth rate)

P₅= [$1.40×(1 + 0.02)₆]/(0.16 - 0.02) = $11.26

The answer is $11.26

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23

d) social security number

let me know if i am correct or not, so i can edit the answer.