Question
Crystal Palace is expected to pay a year-end dividend of 11.4$. You expect the dividends after to grow at constant rate of 3% per year
Crystal Palace is expected to pay a year-end dividend of 11.4$. You expect the dividends after to grow at constant rate of 3% per year indefinitely. This risk free-rtae is 2% and the expected return on the market is 11%. Crystal Palace has a beta of 0.8. What is the intrinsic value of a share today?
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Foundations Of Finance
Authors: Arthur J. Keown, John H. Martin, J. William Petty
10th Edition
0135160618, 978-0135160619
