Question
B C D You have gathered the following financial data for the BBC Company. The following dividends are expected over the next five years. Management
| B | C | D |
| You have gathered the following financial data for the BBC Company. | ||
| The following dividends are expected over the next five years. | ||
| Management expects the price in year 5 to be | $34.89 | |
| Management expects thefollwing future dividends. | ||
| Year | Dividends | |
| 1 | $4.35 | |
| 2 | ||
| 3 | $5.32 | |
| 4 | ||
| 5 | $5.23 | |
| Firms in the same risk class have growth rates of | 4.00% | |
| The expected rate of return over the next five years is | 11.50% | |
| What is the approximate intrinsic value of the BBC stock today? | ||
| a. | Approximate Intrinsic Value of BBC = $31.02 | |
| b. | Approximate Intrinsic Value of BBC = $13.02 | |
| c. | Approximate Intrinsic Value of BBC = $29.78 | |
| d. | Approximate Intrinsic Value of BBC = $32.05 | |
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Accounting Comes Alive The Color Accounting Parable
Authors: Mark Robilliard ,Peter Frampton, Chang Chang, Mark Morrow, John Gorman
1st Edition
1450769608, 978-1450769600
