General Motors expects to pay dividends of $10 this year and $12 next year. After that, the company expects to grow at a 6% rate for the rest of the company's life. What is the value of General Motors stock if investors require a 11% return to purchase the stock?

Answer rating: 100% (QA)

We can use the Gordon Growth Model GGM to estimate the intrinsic value of General Motors stock in th... View the full answer