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Assume the first stage lasts for 3 years and D1 = 2.40, D2= 2.88, D3 = 3.46. In the second stage the dividend growth rate
Assume the first stage lasts for 3 years and D1 = 2.40, D2= 2.88, D3 = 3.46.
In the second stage the dividend growth rate is 5%.
Assume the required return on the firm k = 15%.
What is the intrinsic value of this firm?
Two-stage growth DDM Example Assume the first stage lasts for 3 years and D, = 2.40, D2 = 2.88, D3 = 3.46. In the second stage the dividend growth rate is 5%. Assume the required return on the firm k = 15%. What is the intrinsic value of this firm? Dit T V. = D. (k - g) = (1+k)' (1+k) + t=1Step by Step Solution
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