Question
A company paid its most recent dividend of $4.2 per share. The company is expected to have supernormal growth for the next 4 years at
A company paid its most recent dividend of $4.2 per share. The company is expected to have supernormal growth for the next 4 years at a rate of 25%. The estimated long-term growth rate for the company is 3.7%. The discount rate for the stock is 6%. What is the intrinsic value of the stock?
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk
11th Edition
0324422865, 978-0324422863
