Question
1.Compute the intrinsic value of a common share given the following information: The Beasley Corporation has just paid a dividend of $2.05 per share. The
1.Compute the intrinsic value of a common share given the following information: The Beasley Corporation has just paid a dividend of $2.05 per share. The required rate of return is 9.7 percent per year and dividends are expected to grow indefinitely at a constant rate of 7.2 percent per year.
(Enter your answer as a number rounded to two decimal places, like this: 12.34)
2.Using a two-stage dividend discount model, compute the intrinsic value using the following information about a stock:
Current price per share = 21.97
Current annual dividend per share = 1.60
Annual dividend growth rate for Years 14 = 8.00%
Annual dividend growth rate for Years 5+ = 4.00%
Required rate of return = 10.00%
(Enter your answer as a number with two decimal places, like this: 12.34)
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