Question
1.Google stock is currently priced at $900.00 this morning. The stock does not pay a dividend. An investor wants a 9.00% return to hold the
1.Google stock is currently priced at $900.00 this morning. The stock does not pay a dividend. An investor wants a 9.00% return to hold the stock and will hold onto this investment for the next three years. To achieve the desired return, what must Google sell for in three years?
2.Caskey Inc. is experiencing a period of growth. Dividends are expected to grow at a rate of 15.00% for the next two years and 4.00% thereafter. Yesterday the corporation paid a dividend of $1.09. If the required rate of return is 11.00%, what is the intrinsic value of the stock?
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