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West Tool Company is expected to pay a dividend of $1.0 in Year 1 and $1.4 in Year 2. Analysts expect the price of
West Tool Company is expected to pay a dividend of $1.0 in Year 1 and $1.4 in Year 2. Analysts expect the price of West Tool Company shares to be $16 two years from now. What is the intrinsic value of West Tool Company stock if the market capitalization rate of the company is 12%? Round your answer to two decimal places and enter without the dollar sign.
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Project Finance in Theory and Practice
Authors: Stefano Gatti
2nd edition
978-9382291589, 123919460, 978-0124157538, 978-0123919465
