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Select the appropriate dividend model to find a stock's intrinsic value in the scenario described: - A. B. C. Suppose a firm is expected to

Select the appropriate dividend model to find a stock's intrinsic value in the scenario described:

- A. B. C.

Suppose a firm is expected to increase dividends on its common stock by 8% in the first year and by 6% in the second year.

After that, dividends will increase by 3% per year indefinitely. If the last dividend paid was $2 and the required return is 10%, what is the stocks intrinsic value?

- A. B. C.

Thomas Brothers is expected to pay a $1.50 per share dividend at the end of the year.

The dividend is expected to grow at a constant rate of 7% each year.

The required rate of return is 15%. What is the stocks intrinsic value?

- A. B. C.

The preferred stock of BearKat Enterprises pays an annual dividend of $8 sells and has an expected return of 13.5%.

What is this preferred stock's intrinsic value?

A.

Constant Dividend model

B.

Constant dividend growth model

C.

Abnormal (supernormal) growth model.

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