A dividend of D0 = $1.32 has just been paid to you on a share of common stock. You (and other analysts) expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and each year thereafter. The required return on this low-risk stock is 9.00%. What is your best estimate of the stock’s current market value (your belief as to the stock’s intrinsic value)?

$1.99

2

0

  443




Buyer's Ratings
Social connections


Created

Compatibility

Files Included

April 18, 2012

MS word

doc



LiveZilla Live Help