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A stock pays a dividends of $2 tomorrow. Expected dividend growth is 20%% for the next three years (t-1;t-2; t-3) and then growth is expected
A stock pays a dividends of $2 tomorrow. Expected dividend growth is 20%% for the next three years (t-1;t-2; t-3) and then growth is expected to be 7% thercafter for an indefinite amount of time. The appropriate required rate of return is 15%. What is the stock's intrinsic value?
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To calculate the intrinsic value of the stock we can use the dividend discount model DDM formula Int...
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Entrepreneurial Finance
Authors: J . chris leach, Ronald w. melicher
4th edition
538478152, 978-0538478151
