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Assume that a company is expected to have earnings per share of $14 next year and pay out 50% of that as a dividend. Dividends
Assume that a company is expected to have earnings per share of $14 next year and pay out 50% of that as a dividend. Dividends are also expected to grow at the constant rate of 7% over time.Investors have a required rate of return of 14.3%. . Calculate the intrinsic value of the share using the constant growth Dividend Discount Model.
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