Question
Warriors inc. just paid a dividend of $1.25 and projects supernormal growth of 25% for the next two years. Growth is then expected to slow
Warriors inc. just paid a dividend of $1.25 and projects supernormal growth of 25% for the next two years. Growth is then expected to slow down to a normal 5%. Similar stocks are earning investors a return of 10%.
a. What is the intrinsic value of this stock? (5 points)
b. If the stock is selling for $45 on the NYSE, should you buy it? Why or why not?
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Financial Management For Nurse Managers And Executives
Authors: Cheryl Jones, Steven A. Finkler, Christine T. Kovner
4th Edition
1455700886, 9781455700882
