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What is your estimate of the intrinsic value of company YYY's common stock today using a 3-year investment horizon? You expect YYY to pay a
What is your estimate of the intrinsic value of company YYY's common stock today using a 3-year investment horizon? You expect YYY to pay a $2.00 dividend at the end of next year and a 2.20 dividend the following year (year 2) and a $2.50 dividend at the end of year 3. You expect YYY to sell for $85 at the end of year 3. YYY has a required rate of return of 9%. What is the expected return of YYY based on your estimates if YYY is selling for $68 today?
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