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Suzi owns 100 shares of AB stock. She expects to receive a $238 in dividends next year. She also expects the stock to sell for
Suzi owns 100 shares of AB stock. She expects to receive a $238 in dividends next year. She also expects the stock to sell for $46 a share one year from now. Calculate the intrinsic value of this stock if the dividend payout ratio is 40% and the discount rate is 13.5%. (Show your work).
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