Question
A company's current price is $90.23. Its current dividend is $6.50 a share. Its beta is 1.2 and its growth rate is 11%. What is
A company's current price is $90.23. Its current dividend is $6.50 a share. Its beta is 1.2 and its growth rate is 11%. What is this stock's intrinsic value? Is it over or under valued?
Risk-free rate = 0.016 Market rate = 0.136
Step by Step Solution
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Step: 1
To calculate the intrinsic value of a stock using the Dividend Discount Model DDM we can use the fol...
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
