Question
21. Suppose that Skechers stock paid a dividend of $0.80 last year and that the dividend is expected to grow by a constant rate of
21. Suppose that Skechers stock paid a dividend of $0.80 last year and that the dividend is expected to grow by a constant rate of 6% per year. Skechers beta is 1.24, the current risk-free rate is 2% and the market risk premium is 7%. What is the intrinsic value (current price) of Skechers stock?
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Money Banking And Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
3rd Edition
007337590X, 9780073375908
