Question
I'm evaluating a stock for purchase. my estimation is that the firm will pay the following dividends in the coming years: year 1: $2.00 year
I'm evaluating a stock for purchase. my estimation is that the firm will pay the following dividends in the coming years: year 1: $2.00 year 2: $2.50 and year 3: $3.00. After the 3rd year the dividend is expected to grow at a long term rate of 8%. Your required rate of return is 10%. What is the formulation to calculate the intrinsic value of this stock?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
77861612, 1259194078, 978-0077861612, 978-1259194078
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