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Calculate the intrinsic value of a share given the following information. - The most recent dividend was $1.7. - The dividends are expected to grow
Calculate the intrinsic value of a share given the following information. - The most recent dividend was $1.7. - The dividends are expected to grow at a rate of 14.67% for the next three years.
After three years, you expect the dividends to grow at a constant rate of -1% in perpetuity. The relevant expected return for the share is 9.28%.
How to calculate this sum? Please provide detailed explanation for the same.
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Step: 1
1 Calculate Present Value of Dividends for the First Three Years Well use the present value of growi...Get Instant Access to Expert-Tailored Solutions
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