You are valuing the stock of ViacomCBS. You expected this company to pay a constant dividend...
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You are valuing the stock of ViacomCBS. You expected this company to pay a constant dividend of $5 per year starting in 7 years (ie the first dividend will be received in 7 years). The correct discount rate is 15%. What is the fair value for this stock? You are trying to value the stock of Jimmy's Bikes. Jimmy's Bikes is a growing company that will not pay dividends for a few years. You expect to receive a dividend of $5 in two years. $6 in three years and then the dividend will grow by 5% forever. If the beta of Jimmy's Bikes is 1.5, the expected return on the market is 10%, and the risk-free rate is 3%, what is the fair value of the stock today? You are valuing the stock of ViacomCBS. You expected this company to pay a constant dividend of $5 per year starting in 7 years (ie the first dividend will be received in 7 years). The correct discount rate is 15%. What is the fair value for this stock? You are trying to value the stock of Jimmy's Bikes. Jimmy's Bikes is a growing company that will not pay dividends for a few years. You expect to receive a dividend of $5 in two years. $6 in three years and then the dividend will grow by 5% forever. If the beta of Jimmy's Bikes is 1.5, the expected return on the market is 10%, and the risk-free rate is 3%, what is the fair value of the stock today?
Expert Answer:
Answer rating: 100% (QA)
To value the stock of ViacomCBS we can use the dividend discount model DDM The fair value of the sto... View the full answer
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date:
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