Question
Suppose you want to invest in a stock that has a current price of $100 and is expected to pay a dividend of $3 per
Suppose you want to invest in a stock that has a current price of $100 and is expected to pay a dividend of $3 per share next year. The expected growth rate of the dividend is 5% per year, and the stock has a required rate of return of 10%. Calculate the intrinsic value of the stock using the dividend discount model.
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
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