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Provide the issues or disadvantages of a dividend discount model (Gordon Growth Model) for equity and give a detailed quantitative example and interpretation. Use the
Provide the issues or disadvantages of a dividend discount model (Gordon Growth Model) for equity and give a detailed quantitative example and interpretation. Use the following to calculate, D0=$2.20, g=5%, No debt, Beta 1.2, Rf = 3%, Rm = 10%. Solve for K (WACC) and Intrinsic Value to complete.
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