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Bergman, Inc. expects to pay a dividend of $2.00 at the end of each year beginning in three years, for the foreseeable future. (8 pts)
Bergman, Inc. expects to pay a dividend of $2.00 at the end of each year beginning in three years, for the foreseeable future. (8 pts) If the opportunity cost of capital is 12%, what is the intrinsic value of Bergman Corp.s common stock? (2 pts) What happens to the intrinsic price of the stock if the market interest rate falls? Explain.
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