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Suppose currently T-bill rate is 2% and S&P 500 return is 10%. The beta of GM is 1.7. GM just paid a dividend of 1.5
Suppose currently T-bill rate is 2% and S&P 500 return is 10%. The beta of GM is 1.7. GM just paid a dividend of 1.5 dollars per share, and dividend growth rate of 10%. What is the intrinsic value of GM stock per share?
A. 23.74
B. 15.58
C. 26.79
D. 29.46
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