Question
Puyau Enterprises recently paid a dividend, D 0 , of $3.00. It expects to have nonconstant growth of 20 percent for 2 years followed by
Puyau Enterprises recently paid a dividend, D 0, of $3.00. It expects to have nonconstant growth of 20 percent for 2 years followed by a constant rate of 5 percent thereafter. The firms required return is 8 percent. What is the stocks intrinsic value today?
| a. | $120.00 | |
| b. | $159.12 | |
| c. | $136.67 | |
| d. | $127.06 | |
| e. | $158.24 |
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Derivative Products And Pricing The Das Swaps And Financial Derivatives Library
Authors: Satyajit Das
1st Edition
0470821647, 9780470821640
