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?
Group of answer choices
$27.44
$27.76
$29.35
$29.02
$28.07
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
