Question
The current annual dividend of XYZ Corp is $2.00/share. Five years ago the dividend was $1.36/share, which grew at a constant rate. XYZ Corp expects
The current annual dividend of XYZ Corp is $2.00/share. Five years ago the dividend was $1.36/share, which grew at a constant rate. XYZ Corp expects their dividends to continue to grow at the same rate. The required rate of return on this stock is 12%. The expected return on the market is 14%. What is the current intrinsic value of XYZ Corp?
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The Handbook Of Mergers And Acquisitions
Authors: David Faulkner, Satu Teerikangas, Richard J. Joseph
1st Edition
0199601461, 978-0199601462
