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Name: Table below to be used with problem #4 below: Variable Value Explanation Dividend 5%, 5% for 2 years (annual estimate) and 3% growth 3%
Name: Table below to be used with problem #4 below: Variable Value Explanation Dividend 5%, 5% for 2 years (annual estimate) and 3% growth 3% per year indefinitely thereafter. estimate Current $1.00 Dividend paid to the current owner on dividend record Beta 2.0 Current estimate coefficient Expected 12.0% Historical arithmetic average (annual) return market on the S&P 500 Index return RFR 5.0% 10-year Treasury bond yield I 4. (10 pts) Using the table above, what is the maximum that an investor should be willing to pay for the share of common stock today (intrinsic value)
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