ZAPCOVID Corporation pays an annual dividend of $2.00 per share and is expected to grow at the rate of 20%, 15% and 10% for the next three years respectively followed by a constant growth of 8% thereafter.  The current risk free rate of return is 4% and the market risk premium is expected to be 8%. The beta for the firm under consideration is 1.2. 

What is the intrinsic value of the firm's stock?

Answer rating: 100% (QA)

SOLUTION To calculate the intrinsic value of the firms stock we can use the dividend discount model ... View the full answer