Question
You are given the following information for a share: - The expected return on the share is 14% - The forecast for the next four
You are given the following information for a share:
- The expected return on the share is 14% - The forecast for the next four annual dividends are $3.99, $3.94, $0.54, and $7.25 - After the fourth year, the long-term growth rate of the dividend is 2%
What is the intrinsic value of the share?
how to calculate this sum, Please provide me the solution with detailed explanation
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the intrinsic value of the share using the Dividend Discount Model DDM we can use the f...
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Step: 2
Step: 3
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Accounting Principles Part 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
6th Canadian edition
1118306783, 978-1118728918, 1118728912, 978-1118306789
