Question
Bergenfield, Inc.,is expected to pay a dividend of $2 in the upcoming year. Dividends are expected to grow at the rate of 7% per year.
Bergenfield, Inc.,is expected to pay a dividend of $2 in the upcoming year. Dividends are expected to grow at the rate of 7% per year. The risk-free rate of return is 6%, and the expected return on the market portfolio is 18%. The stock of Bergenfield, Inc., has a beta of 0.75. Using the constant-growth DDM, the intrinsic value of the stock is :
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Financial Management Core Concepts
Authors: Raymond M Brooks
2nd edition
132671034, 978-0132671033
