Todd Mountain Development Corporation is expected to pay a dividend of $4 in the upcoming year. Dividends
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Todd Mountain Development Corporation is expected to pay a dividend of $4 in the upcoming year. Dividends are expected to grow at the rate of 8% per year. The risk-free rate of return is 3%, and the expected return on the market portfolio is 12%. The stock of Todd Mountain Development Corporation has a beta of 1.2. Using the constant-growth DDM, the intrinsic value of the stock is _________.
Related Book For
Intermediate Microeconomics and Its Application
ISBN: 978-0324599107
11th edition
Authors: walter nicholson, christopher snyder
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