• What are the limitations of the dividend discount model?
• A stock currently pays a dividend of $4 for the year. Expected dividend growth is 20% for the next three years and then growth is expected to revert to 4% thereafter for an indefinite amount of time. The appropriate required rate of return is 10%. What is this stocks intrinsic value?
• What is the rate of return on an investment that costs $500 and is sold after 1 year for $560?