What is the intrinsic value of a stock which last paid a dividend of $2.55 and is expected to grow at 18% over the next 2 years after which it will settle down at a stable rate of 7% per annum? The investor's required rate of return is 13%.  

Answer rating: 100% (QA)

To calculate the intrinsic value of a stock using the dividend discount model we need to consider th... View the full answer