Question
Use the Non-zero Growth Model to determine the correct firm value. r 0.12 Next years dividend $2.00 Growth rate 0.08 Shares outstanding 1,000,000 Group of
Use the Non-zero Growth Model to determine the correct firm value.
| r | 0.12 |
| Next years dividend | $2.00 |
| Growth rate | 0.08 |
| Shares outstanding | 1,000,000 |
Group of answer choices
a.Intrinsic value = $25
Firm value = 250,000
b.None of the answers is correct.
c.Intrinsic value = $50
Firm value = 50,000,000
d.Intrinsic value = $150
Firm value = 150,000,000
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Mergers Acquisitions And Other Restructuring Activities
Authors: Donald DePamphilis
11th Edition
012819782X, 978-0128197820
