Pierre Francois is thinking about buying some shares of Renault SA at 60.85 per share. He expects
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Pierre Francois is thinking about buying some shares of Renault SA at €60.85 per share. He expects the price of the stock to rise to €70.0 over the next two years. During that time he also expects to receive annual dividends of €2 per share.
a. What is the intrinsic worth of this stock, given a 5% required rate of return?
b. What is the expected return?
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Related Book For
Fundamentals Of Investing
ISBN: 9780135175217
14th Edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
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