Question
A stock is expected to pay $3.96 per year in dividends in the foreseeable future. Assume an existing stockholder expects to sell the stock for
A stock is expected to pay $3.96 per year in dividends in the foreseeable future. Assume an existing stockholder expects to sell the stock for $42.85 in two years and requires 12.94% annual return on this stock investment. What is the intrinsic value of this stock? Please show work.
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Health Care Finance Basic Tools For Nonfinancial Managers
Authors: Judith J. Baker, R.W. Baker, Neil R. Dworkin
5th Edition
1284118215, 978-1284118216
