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In the most recent past year, Tyler Toys showed earnings of $3.00 per share and paid $1.20 per share in dividends. It is expected to
In the most recent past year, Tyler Toys showed earnings of $3.00 per share and paid $1.20 per share in dividends. It is expected to have a dividend growth rate of 7 percent this year and every year thereafter. Shareholders require a rate of return of 14 percent to invest in the company. What is the intrinsic value of this stock? A. $42.86 B. $18.34 C. $17.14 D. $40.05 E. None of the above.
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