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Lansing, Inc J ust now paid a dividend of $3.50, and expects its divident to grow at a constant rate of 5.0%. K s =
Lansing, Inc
- Just now paid a dividend of $3.50, and
- expects its divident to grow at a constant rate of 5.0%.
- Ks = 12%
Question: What is the intrinsic value of this stock?
P0 = d1 / (Ks - g)
d1 = d0 x (1 + g)
Ks = Rf + Beta x (Rm - Rf)
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