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Kelly Johnson, an analyst, estimates the intrinsic value of equity stock of Bodoni Tech Solutions Inc. using the Gordon growth model. The current dividend is
Kelly Johnson, an analyst, estimates the intrinsic value of equity stock of Bodoni Tech Solutions Inc. using the Gordon growth model. The current dividend is $8.00 and is expected to grow at 5% a year for the next three years. Thereafter, the dividend is expected to grow at 3% perpetually. The equity is traded at $81.9 in the market and the required rate of return is 12%. The intrinsic pershare value estimate calculated by Johnson is closest to: Group of answer choices $97. $108. $78
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