Question
A stock just paid a dividend this morning of $1.43. Dividends are expected to grow at 14.00% for the next two years. After year 2,
A stock just paid a dividend this morning of $1.43. Dividends are expected to grow at 14.00% for the next two years. After year 2, dividends are expected to grow at 8.25% 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 15.00% to own the stock, what is its intrinsic value? Round to 2 decimals
The risk-free rate is 1.31% and the market risk premium is 9.59%. A stock with a of 0.95 just paid a dividend of $1.65. The dividend is expected to grow at 21.22% for three years and then grow at 3.66% forever. What is the value of the stock? Round to 2 decimals
Suppose the risk-free rate is 3.61% and an analyst assumes a market risk premium of 6.60%. Firm A just paid a dividend of $1.32 per share. The analyst estimates the of Firm A to be 1.43 and estimates the dividend growth rate to be 4.08% forever. Firm A has 253.00 million shares outstanding. Firm B just paid a dividend of $1.99 per share. The analyst estimates the of Firm B to be 0.79 and believes that dividends will grow at 2.88% forever. Firm B has 180.00 million shares outstanding. What is the value of Firm A? Round to 2 decimals
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