Question
A stock just paid a dividend this morning of $1.39. Dividends are expected to grow at 11.00% for the next two years. After year 2,
A stock just paid a dividend this morning of $1.39. Dividends are expected to grow at 11.00% for the next two years. After year 2, dividends are expected to grow at 8.35% for the following three years. At that point, dividends are expected to grow at a rate of 4.00% forever. If investors require a return of 12.00% to own the stock, what is its intrinsic value?
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Principles Of Finance With Excel
Authors: Simon Benninga
2nd Edition
0199755477, 9780199755479
