Abdullah uses information from a reporting company to estimate the intrinsic value of The Amazing Company (Henceforth TAC). Abdullah finds that TAC has a required return on equity of 20%, paid a dividend last year of $0.79 and a retention ratio of 46%. They estimate that the rate of growth of dividends will be 2% for perpetuity. Calculate the intrinsic value that Abdullah would find for TAC?

Answer rating: 100% (QA)

To calculate the intrinsic value of The Amazing Company TAC using the D... View the full answer