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Find the intrinsic value of the stock of company ABC using the following data: risk free rate = 5% market risk premium = 8% Expected
Find the intrinsic value of the stock of company ABC using the following data: risk free rate = 5% market risk premium = 8% Expected market return = risk free rate + market risk premium beta = 0.9 ROE = 12.5% dividend payout ratio = 0.22 Dividends for the next 4 years are expected to be .59, .67, .76, .85. Subsequent growth will be at the computed growth rate, g.
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