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Whizz Corp. has recently paid a dividend of $2.0 per share. You expect that the dividend will be $4.0 next year (t=1), increase 30.0% the
Whizz Corp. has recently paid a dividend of $2.0 per share. You expect that the dividend will be $4.0 next year (t=1), increase 30.0% the following year (t=2), then increase 20.0% the following year (t=3), and then grow at a rate of 10.0% indefinitely (after t=3). The company's assets are worth $180 million, and its debt is worth $100 million. Its asset beta is 1.8. You estimate that the risk-free rate is 4.0%, and the market risk premium is 6.0% as well. The company's tax rate is 0%. If your estimations are correct, what is the value of the stock today? The value is $26.99. The value is $106.07. The value is $20.15. The value is $46.74
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