Question
RedKite Inc. expects earnings next year of $4 per share. The dividend payout ratio will be 1/4. If the required rate of return on its
RedKite Inc. expects earnings next year of $4 per share. The dividend payout ratio will be 1/4. If the required rate of return on its stock is 15% and the growth rate of the dividend is 7%. Based on the constant-growth model, what is the intrinsic value of its stock today?
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
13th Edition
1337395080, 9781337395083
