Question
A stock just paid an annual dividend of $6.9. The dividend is expected to grow by 5% per year for the next 4 years. In
A stock just paid an annual dividend of $6.9. The dividend is expected to grow by 5% per year for the next 4 years. In 4 years, the P/E ratio is expected to be 13 and the payout ratio to be 60%. The required rate of return is 8%. Attempt 4/5 for 8 pts.
Part 1 What is the intrinsic value of the stock?
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Financial Management In The Sport Industry
Authors: Matthew T Brown, Daniel Rascher, Mark S Nagel, Chad Mcevoy
1st Edition
1934432040, 978-1934432044
