Question
Company A has just paid a dividend of $2.00. The risk-free rate of return is 1% and the market risk premium is 12%. The beta
Company A has just paid a dividend of $2.00. The risk-free rate of return is 1% and the market risk premium is 12%. The beta of the company's stock is 1.20. Knowing that the company's dividend grows at a constant rate of 6%,
what is the intrinsic value of the company 4 years from now?
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
11th edition
978-1111530266
