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1. Determine the Intrinsic Value (NPV) of the stock NPV. If the stock is currently selling for $55 in the market do you buy. Sell

1. Determine the Intrinsic Value (NPV) of the stock NPV. If the stock is currently selling for $55 in the market do you buy. Sell or hold and why?

  1. A. Assume that a share of stock is trading for $135. The dividend that it provides is 4.5 and is expected to grow by 7.25%. What rate of return do you expect and why? Briefly discuss.

B. What is the current value of a company stock that its dividends are expected to grow at 7.50% per year. The company is trading at $78 per share and you require a return of 11%. After determining the company stock price, do you recommend you buy, hold, or sell and why?

Chapter 10:

  1. Using at least one side of one page as a guideline minimum (typed up), select and discuss any One publicly traded stock. Discuss what economic, financial factors lead to its performance and industry that it is in. How does it perform compared to its peers and would you recommend it and why.

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