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The current dividend of AnCab Inc. is $4.00 and is expected to grow at 8.00% for five years. After the first five years, the growth
The current dividend of AnCab Inc. is $4.00 and is expected to grow at 8.00% for five years. After the first five years, the growth rate of the dividends expects to grow at a constant 3.00% into the future. If the cost of equity is 5.0%, what is the stock price of the company in Year 5 and intrinsic value of its stock? Lastly, if the current stock price of the company is $240, should you buy? $303:$259;Yes$237:$303:Yes$259:$237;No$259:$285:No
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