Question
13. Find the intrinsic value of the stock that pays a dividend of $3.24 and has a growth rate of 8.3% for 4 years then
13. Find the intrinsic value of the stock that pays a dividend of $3.24 and has a growth rate of 8.3% for 4 years then it stabilizes at a long-run growth rate of 2.5%. The stock has a Beta of .77, the risk free rate is 1.75 % and the market return is 6.65%.
| A. | $10.81 | |
| B. | $56.51 | |
| C. | $57.64 | |
| D. | $135.72 |
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The Selected Works Of George J. Benston Banking And Financial Services Volume 1
Authors: James D. Rosenfeld
1st Edition
0195389018, 0199745471, 9780199745470
