A company's common stock is expected to pay $2 in dividends annually over the next four years. At the end of the fourth year, its stock is expected to be valued at $45. If the firm's cost of equity is 12%, what is its intrinsic value today?  What should its stock sell for in 1 year?

Answer rating: 100% (QA)

To find the intrinsic value of the stock today we need to find the present value of all future divid... View the full answer