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Seinfeld Inc. just paid a dividend of $1.35 and projects supernormal growth of 25% for the next two years. Growth is then expected to slow
Seinfeld Inc. just paid a dividend of $1.35 and projects supernormal growth of 25% for the next two years. Growth is then expected to slow down to a normal 5\%. Similar stocks are earning investors a return of 10%. 1. What is the intrinsic value of this stock? 2. If the stock is selling for $45 on the NYSE, should you buy it? Why or why not
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