Over the last 5 years, NBA's earnings per common share has increased from $0.62 to $0.91. Assuming an investor in NBA stock has a required rate of return of 14%, what is the estimated value of NBA if its current dividend is $0.12? Assume that dividends will continue to grow at a rate similar to that of EPS. Please show the work.

Answer rating: 100% (QA)

To estimate the value of NBA we can use the dividend discount model DDM which i... View the full answer