Question
Lily Co. is expected to pay end of the dividend of $5.25 on its common stock. The company's dividends are expected to grow at a
Lily Co. is expected to pay end of the dividend of $5.25 on its common stock. The company's dividends are expected to grow at a constant rate of 8.5% indefinitely. If the required rate of return on this stock is 15.5%, compute the intrinsic value per share of Lily Co. stock.
| $81.38 | ||
| $75 | ||
| $43.90 | ||
| $56.23 |
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Middle Market M And A Handbook For Advisors Investors And Business Owners
Authors: Kenneth H. Marks, Christian W. Blees, Michael R. Nall, Thomas A. Stewart
2nd Edition
1119828104, 978-1119828105
