Question
Company X is expected to pay a dividend of $7 in the coming year. Dividends are expected to grow at the rate of 15% per
Company X is expected to pay a dividend of $7 in the coming year. Dividends are expected to grow at the rate of 15% per year. The risk-free rate of return is 6%, and the expected return on the market portfolio is 14%. The stock of Company X has a beta of 3.00. The intrinsic value of the stock is: ?
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Microeconomics
Authors: Paul Krugman, Robin Wells
3rd edition
978-1429283427, 1429283424, 978-1464104213, 1464104212, 978-1429283434
