Homework Financial Markets.pdf X 1/ 2 100% Exam Financial Markets 1. An investor expects to purchase common stocks today and sell them after three years. The investor has estimated dividends for the...

Extracted text: Homework Financial Markets.pdf X 1/ 2 100% Exam Financial Markets 1. An investor expects to purchase common stocks today and sell them after three years. The investor has estimated dividends for the next three years, D,, D, and D, and the selling price of the stock three years from now, P3. According to the dividend discount model, the intrinsic value of the stock today is the present value of: a) next year's dividend, D. b) future expected dividends, D, and D2 c) future expected dividends, D,, D2 and D3 d) future expected dividends and price, D., D2, and P2 e) future expected dividends and price, D, D, D, and P,