• AT&T (T) is a dividend-paying company and is expected to pay an annual dividend of $1.75 at the end of the year. It's dividend is expected to grow at a constant rate of 6.50% per year. If you as an investor require a return of at least 13.25%, what is the intrinsic market value of T's shares? (Round to nearest two decimals).
• 
  
• If AT&T’s stock currently trades for $20.50 per share, then what is the expected rate of return on the stock after one year? (Round to one decimal) Does the expected rate of return meet your requirement? T intrinsic value T expected return (%) Does the return meet your requirement?

Answer rating: 100% (QA)

SOLUTION To calculate the intrinsic market value of ATTs shares we can use the Gordon Growth Model a... View the full answer