It is worthwhile to view a share of stock as the sum of its worth if the

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It is worthwhile to view a share of stock as the sum of its worth if the company behaves like a cash cow (the company does no investing) and the value per share of its growth opportunities.

We write the value of a share as:

EPS NPVGO R

We showed that, in theory, share price must be the same whether the dividend growth model or the formula here is used. LO.1

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Corporate Finance

ISBN: 9780073105901

8th Edition

Authors: Jeffrey Jaffe, Bradford D Jordan

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Question Posted: Jul 31, 2024 11:01 AM

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It is worthwhile to view a share of stock as the sum of its worth if the

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Corporate Finance

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