Question
the risk free rate of return is 5 percent, the market risk premium is 10 percent, and the stock of ABC has beta of 1.5.
the risk free rate of return is 5 percent, the market risk premium is 10 percent, and the stock of ABC has beta of 1.5. Last year, ABC earned $10 per share in earnings and 70 percent of earnings were retained by the firm- the remaining amount was paid out dividends. Dividends are expected to grow by 2 percent. what's the intrinsic value of ABC stock?
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
11th edition
9781259278617, 77861647, 1259278611, 978-0077861643
