Question: Answer Question 2 to 4 using the following information. Stanley Corp. paid a dividend of $3.00 in the year that just ended. Analysts expect that
Answer Question 2 to 4 using the following information. Stanley Corp. paid a dividend of $3.00 in the year that just ended. Analysts expect that dividends will grow by 30% this year, 20% in the second year, and by 10% in the third year. After the third year they plan to maintain a constant retention rate of 50%. Analysts forecast that the return on new equity investment for Stanley Corp. after it's third year would be 10%. The required rate of return on Stanley Corp's stock is 9%. Note: Do not round intermediate calculations. What is the intrinsic value of the stock? O $119.93 O $109.03 $115.84 $76.05
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