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Melissa Cutt is thinking about buying some shares of EZLawn Equipment, at $40.68 per share. She expects the price of the stock to rise
Melissa Cutt is thinking about buying some shares of EZLawn Equipment, at $40.68 per share. She expects the price of the stock to rise to $44.22 over the next 3 years. During that time she also expects to receive annual dividends of $4.75 per share. a. What is the intrinsic worth of this stock, given a required rate of return of 9%? b. What is its expected return?
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To calculate the intrinsic worth of the stock and its expected return we can use the Dividend Discou...
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
