Question
ABC, Inc. has to reinvest all of its earnings in new projects now and wont be paying any dividend until 10 years from now. It
ABC, Inc. has to reinvest all of its earnings in new projects now and wont be paying any dividend until 10 years from now. It is expected to pay $6.50 in year 10 while the dividends are expected to grow at 7% per year thereafter. If the cost of capital is 14%, what is the intrinsic value of the stock now?
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Introduction To Machine Learning In Quantitative Finance An Advanced Textbooks In Mathematics
Authors: Hao Ni, Xin Dong, Jinsong Zheng, Guangxi Yu
1st Edition
1786349361, 9781786349361
