Question
Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 22% for two years and then at 4% thereafter. If
Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 22% for two years and then at 4% thereafter. If the required return for Deployment Specialists is 10.5%, what is the intrinsic value of Deployment Specialists stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.) I know what the answer is and how to set up the equation but when i do it this way i end up with a number in the single much smaller than 21.83
= | $1 1.22/ | + | $1 1.222/ | + | $1 1.222 1.04/ |
1 + 0.105 | (1 + 0.105)2 | (0.105 0.04) (1 + 0.105)2 |
= $21.83 |
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