Question
An investor has examined Home Depot stock and makes the following predictions for the future: YEAR 1 2 3 4 DIVIDEND $1.42 $1.53 $1.53 $1.52
An investor has examined Home Depot stock and makes the following predictions for the future:
| YEAR | 1 | 2 | 3 | 4 |
|---|---|---|---|---|
| DIVIDEND | $1.42 | $1.53 | $1.53 | $1.52 |
The investor believes the selling price in four years will be $78.51. If the investor wants a 16.00% 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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Sport Finance
Authors: Gil Fried, Timothy D. DeSchriver, Michael Mondello
3rd Edition
1450421040, 978-1450421041
