Recalculate the intrinsic value of Toyota in each of the following scenarios by using the threestage growth

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Recalculate the intrinsic value of Toyota in each of the following scenarios by using the threestage growth model of Spreadsheet 18.1 (available in Connect; link to Chapter 18 material).

Treat each scenario independently.

a. The terminal growth rate will be 4.5%.

b. Toyota’s beta is .9.

c. The market risk premium is 7.5%. P-69

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ISE Investments

ISBN: 9781266085963

13th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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