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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