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Use the Dividend Growth Model (DDM) to estimate the inherent value of a share of the Red Monkey Corporation, along with the following information;
Use the Dividend Growth Model (DDM) to estimate the inherent value of a share of the Red Monkey Corporation, along with the following information; 1. Beta - 1.25 2. Retention Ratio -.60 3. This year's Earnings Per Share (EPS) - $3.00 4. Forecasted long-term growth rate of EPS -6.00% 5. Risk Free rate - 1.50% 6. Equity Risk Premium - 7.00%
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