Question
GHL stock has a present intrinsic value equal to $500 per share, the company announced a dividend equal to $50 per share for the coming
GHL stock has a present intrinsic value equal to $500 per share, the company announced a dividend equal to $50 per share for the coming year. GHL expected its dividends to grow at a 6%.
I. Estimate GHL investors required rate of return.
II. What will happen to the required rate of return if the growth rate is higher. Justify your answer
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Financial Intelligence
Authors: Income Mastery
1st Edition
1647773210, 978-1647773212
