Question
Pacor Industries recently paid its annual dividend of $2. Dividends have consistently grown at a rate of 2.7%. Analysts estimate that the stock has a
Pacor Industries recently paid its annual dividend of $2. Dividends have consistently grown at a rate of 2.7%. Analysts estimate that the stock has a beta of 1.00. The current risk-free rate is 2.3% and the market return is 10.1%. Assuming that CAPM holds, what is the intrinsic value of this stock?
| $29.35 |
| $27.76 |
| $27.44 |
| $28.07 |
| $29.02 |
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Chains Of Finance How Investment Management Is Shaped
Authors: Diane-Laure Arjalies, Philip Grant, Iain Hardie, Donald MacKenzie, Ekaterina Svetlova
1st Edition
0198802943, 978-0198802945
