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The stock of Amigo Corp. is currently selling for $10 per share. Earnings per share in the coming year are expected to be $2. The
- The stock of Amigo Corp. is currently selling for $10 per share. Earnings per share in the coming year are expected to be $2. The company has a policy of paying out 50% of its earnings each year in dividends. The rest is retained and invested in projects that earn a 20% rate of return per year. This situation is expected to continue indefinitely.
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- Assuming the current market price off the stock reflects its intrinsic value as computed using the constant-growth DDM, what rate of return do Amigos investors require?
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Investing In The Trump Era How Economic Policies Impact Financial Markets
Authors: Nicholas P. Sargen
1st Edition
3319760440,3319760459
