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Assume it is January 1 , 2 0 2 4 . Merck Pharmaceuticals ( MRK ) is currently selling for $ 1 3 0 .
Assume it is January Merck Pharmaceuticals MRK is currently selling for $ Dividends for are expected to be $ per share. We expect that dividends in will be $ and in they will be $ We will be selling the stock at the end of and The Value Line predicts the price to be $ per share at that time. Our required rate of return is Using the Discounted Cash Flow Model stock valuation formula Value of stock present value of future dividends present value of price of stock when we plan to sell calculate the present value of the future cash flows from this stock. Would you consider buying MRK
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