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Use the Gordon model to answer the following questions. Assume HDs growth rate is 2.5%. What is HDs intrinsic value? Compared to its stock price,
Use the Gordon model to answer the following questions. Assume HDs growth rate is 2.5%. What is HDs intrinsic value? Compared to its stock price, would you buy the stock? Why? How would your answers change if we use HDs unlevered beta? How would your answers change if we ignore the special dividend from repurchases?
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