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A firm is planning on paying its first dividend of $2 after two years. Then dividends are expected to grow at 6% per year indefinitely.
A firm is planning on paying its first dividend of $2 after two years. Then dividends are expected to grow at 6% per year indefinitely. The stock's required return is 14%. What is the intrinsic value of a share today?
| $25.00 | ||
| $19.24 | ||
| $16.87 | ||
| $20.99 |
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Introduction to Finance Markets Investments and Financial Management
Authors: Melicher Ronald, Norton Edgar
15th edition
