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1 . Assume a stock is priced at $ 1 0 0 ; calculate its intrinsic value based on the Gordon growth DDM , with

1. Assume a stock is priced at $100; calculate its intrinsic value based on the Gordon growth DDM, with the following assumptions: D0= $3, g =6 percent, and k =10 percent. Indicate whether investors should buy, hold, or sell the stock. Indicate your recommendation if g =7 percent.

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