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Aphrodite Corporation's common stock is selling at 140 dollars a share. It just paid a dividend of 8 dollars. Investors expect a return of 15%
Aphrodite Corporation's common stock is selling at 140 dollars a share. It just paid a
dividend of 8 dollars. Investors expect a return of 15% on their investment on Aphrodite's common stock.
- ) From this information what is the expected growth of future dividends?
- ) What is the associate Dividend Yield?
- )The stock is traded at the NASDAQ Exchange with the Quoted Price of 70 dollars. Is the stock Overvalued or Undervalued?
- ) What will be the price of Aphrodite's stock five years from now?
- ) What are the limitations of this model?
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