Acme Inc. just paid an annual dividend of 0.89. You expect Acme to make a big...

 

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Acme Inc. just paid an annual dividend of 0.89. You expect Acme to make a big push into the Internet-of-Things (IoT) space during the next five years. As a result, you expect Acme/s dividend growth will average 14.96 % per year over the next five years. Presuming a required return of Rcs= 8.50 %, and a growth rate of 4.44% forever after year 5, what is Acme's intrinsic value (PO) based on the multi-growth dividend discount model? Acme Inc. just paid an annual dividend of 0.89. You expect Acme to make a big push into the Internet-of-Things (IoT) space during the next five years. As a result, you expect Acme/s dividend growth will average 14.96 % per year over the next five years. Presuming a required return of Rcs= 8.50 %, and a growth rate of 4.44% forever after year 5, what is Acme's intrinsic value (PO) based on the multi-growth dividend discount model?

Answer rating: 100% (QA)

To calculate Acme Incs intrinsic value PO based on the multigrowth dividend discount model we need t... View the full answer