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The Pancake Corporation recently paid a $3 dividend and is expected to grow at 5% forever. investors generally require an expected return of at least
The Pancake Corporation recently paid a $3 dividend and is expected to grow at 5% forever. investors generally require an expected return of at least 9% before they'll buy stocks similar to those of Pancake.
a. What is Pancake's intrinsic value?
b. is t a bargain if it's selling at $76 a share?
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