Problem 1. Estimate the forward price of Intel Stock (INTC) one year from now, assuming 1. Trade Dat

Problem 1. Estimate the forward price of Intel Stock (INTC) one year from now, assuming 1. Trade Date: September 18 2019, end

Problem 1. Estimate the forward price of Intel Stock (INTC) one year from now, assuming 1. Trade Date: September 18 2019, end-of-day 2. Settlement Date: September 18, 2020 end-of-day 3. Dividend stream over the last 11 distribution dates: Date Dividend ($ 6-Aug-19 0.315 6-May-19 0.315 6-Feb-19 0.315 6-Nov-18 0.3 6-Aug-18 0.3 4-May-18 0.3 6-Feb-18 0.3 6-Nov-17 0.273 3-Aug-17 0.273 3-May-17 0.273 3-Feb-17 0.26 3-Nov-16 0.26 Assume a flat discount rate of 2.25%. State your assumptions on future dividend rates clearly. Also, calculate the equivalent continuously compounded implied dividend yield.

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