Question
Your broker has recommended that you purchase stock in ZZZ-Best, Inc. She estimates that the 1-year target price is $64, and ZZZ-Best consistently pays an
Your broker has recommended that you purchase stock in ZZZ-Best, Inc. She estimates that the 1-year target price is $64, and ZZZ-Best consistently pays an annual dividend of $13. Analysts estimate that the stock has a beta of 1.12. The current risk-free rate is 2.7% and the market return is 12.4%. Assuming that CAPM holds, what is the intrinsic value of this stock?
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Fundamentals Of Financial Management
Authors: James C. Van Horne
10th Edition
0138596875, 978-0138596873
