Questions #7 and #8 use the following setup.
Intel will pay a quarterly dividend of $0.32 for each quarter
in the next year. And, you expect its stock price to be $53.86 by the end of next year. The (annual) required return is 14%, with quarterly compounding.
How much are you willing to pay for Intel's stock today?
Hint: you need to convert the annual rate into the quarterly rate by dividing it by 4.
Following Question #7, how much can you sell the stock for immediately after its 2nd dividend is paid out?
Assume the (annual) required return is 14%, with quarterly compounding.