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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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