Question
A stock is expected to pay a dividend of $5.27 exactly one year from today and a dividend of $5.65 exactly two years from today.
A stock is expected to pay a dividend of $5.27 exactly one year from today and a dividend of $5.65 exactly two years from today. After the second dividend, future dividends will grow at a constant rate of 6% per year indefinitely. What is the stock's intrinsic value if Commodore's cost of equity capital is 14.2%?
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The Handbook Of Mortgage Backed Securities
Authors: Frank Fabozzi
6th Edition
0071460748, 978-0071460743
