A stock pays a dividends of $2 tomorrow. Expected dividend growth is 20%% for the next three years (t-1;t-2; t-3) and then growth is expected to be 7% thercafter for an indefinite amount of time. The appropriate required rate of return is 15%. What is the stock's intrinsic value?

Answer rating: 100% (QA)

To calculate the intrinsic value of the stock we can use the dividend discount model DDM formula Int... View the full answer