XYZ is currently earning $5 per share with a 60 percent dividend payout. The current dividend is not expected to change. Investors require a rate of return of 10 percent to invest in a stock with the riskiness of XYZ. What is the intrinsic value of the stock?

Answer rating: 100% (QA)

To calculate the intrinsic value of a stock using the Dividend Discount Model DDM you can use the ... View the full answer