Nina, a lead fundamental analyst was trying to calculate the intrinsic value of X Co. stock. X
Fantastic news! We've Found the answer you've been seeking!
Question:
Nina, a lead fundamental analyst was trying to calculate the intrinsic value of X Co. stock. X Co. just paid a dividend of $5. The dividend is expected to grow at 10% p.a. for next 3 years, then (from 4th year onwards) it will grow at 4% p.a in perpetuity. What is the intrinsic value of the X Co. stock? The discount rate is 12% p.a. compounded semi-annually.
Related Book For
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston
Posted Date: