A company's stock currently pays a dividend of $1.25 per share. The company is expected to grow dividends 25% next year, 20% the following year, and 15% the year after that before dividend growth settles down to a long-term average rate of 5% per year. Estimate the intrinsic value per share if the required return on the stock is 11%.
Answer to relevant QuestionsA stock currently pays a dividend of $0.80 per share. The company is expected to grow dividends 40% next year, 30% the following year, 20% the year after that and 15% the following year before dividend growth settles down to ...Why is it important to know how to value contracts and other packages of expected cash flows in business? Write out the general expression for expected return (e.g., Expected Return = ). Would you expect a firm's annual free cash flow to be greater than or less than NOPAT in a given year? Explain. Calculate UTX's current and quick ratios for each year 2010-2012.
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