Question
An investor has examined Home Depot stock and makes the following predictions for the future: YEAR 1 2 3 4 DIVIDEND $1.40 $1.57 $1.52 $1.51
An investor has examined Home Depot stock and makes the following predictions for the future:
| YEAR | 1 | 2 | 3 | 4 |
|---|---|---|---|---|
| DIVIDEND | $1.40 | $1.57 | $1.52 | $1.51 |
The investor believes the selling price in four years will be $79.98. If the investor wants a 15.00% return to hold the stock, what intrinsic value does the investor put on Home Depot today?
Answer Format: Currency: Round to: 2 decimal places.
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Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
