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help A stock paid an annual dividend yesterday of $4 per share. Dividends are expected to grow at 5.5% per year. If the stock has
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A stock paid an annual dividend yesterday of $4 per share. Dividends are expected to grow at 5.5% per year. If the stock has a beta of . 85 , the risk-free rate is 3%, and the expected market return is 9.5%, what is the stock's intrinsic value today? (this is yet another way of phrasing a question asking you to find P0.) QUESTION 3 What will the valuejof the stock in the previous question be in 3 years if the risk-free rate and expected market retun have risen to 4% and 10.25%, respectively, at that time? Calculate D4 using the div growth rate, calculate the new CAPM r, then use DGM to find P3 Step by Step Solution
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