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10. The expected future returns of a companys stock are as follows. If the expected rate of return on the stock is 15 percent per
10. The expected future returns of a companys stock are as follows. If the expected rate of return on the stock is 15 percent per annum, determine the intrinsic value of the stock.
Year | Expected returns |
1 | 120 |
2 | 115 |
3 | 130 |
4 | 140 |
5 | 125 |
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