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Intercoastal Corporation recently paid a common stock dividend of $2.50. Analysts predict that the firm and its dividends will grow at a rate of 12%
Intercoastal Corporation recently paid a common stock dividend of $2.50. Analysts predict that the firm and its dividends will grow at a rate of 12% per year. Intercoastal has a beta of 1.35. The current risk-free rate of interest is 5.0% and the current return on the market is 13%. What is the intrinsic value of Intercoastal common stock?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
