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A stock just paid an annual dividend of $7.7. The dividend is expected to grow by 6% per year for the next 4 years. In
A stock just paid an annual dividend of $7.7. The dividend is expected to grow by 6% per year for the next 4 years. In 4 years, the P/E ratio is expected to be 23 and the payout ratio to be 60%.
The required rate of return is 8%.
1.What is the intrinsic value of the stock?
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