A company just paid a dividend of $1.39 and it currently has a very high growth rate of 11.2%. Analysts expect this high growth rate to remain at this pace for 3 years, In year 4, the growth rate is expected to decay down to the average economic growth rate which is currently assumed to be 2.46%. If the relevant required return is 9.3%, then what is the stock's intrinsic value using the multistage DDM method?

Answer rating: 100% (QA)

To calculate the intrinsic value of the stock using the multistage DDM method we need to estimate th... View the full answer