Question: Calculate the value of Microsoft using the Dividend growth model, using the following information: Risk free rate: 2.48%, Return of the market 8.8%, beta: 0.91,

  1. Calculate the value of Microsoft using the Dividend growth model, using the following information: Risk free rate: 2.48%, Return of the market 8.8%, beta: 0.91, dividend $2.48 (D0)and a grow rate of 3.5%. The current stock price is $303, according to your calculation should you invest in the stock? Why?

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