Question
A share of common stock has just paid a dividend of $2.50. If the expected long-run growth rate for this stock is 5%, and if
A share of common stock has just paid a dividend of $2.50. If the expected long-run growth rate for this stock is 5%, and if investors' required rate of return is 11.95%, what is the stocks intrinsic value? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.
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Corporate Finance Core Principles and Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
3rd edition
978-0077971304, 77971302, 978-0073530680, 73530689, 978-0071221160, 71221166, 978-0077905200
