Financial analysts forecast Baruch Inc. to make 1 million USD for the next 10 years, starting next

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Financial analysts forecast Baruch Inc. to make 1 million USD for the next 10 years, starting next year.

Let's assume we are only interested in 10 years (nothing beyond this is relevant).

Baruch Inc. is fully equity financed (No debt).

Baruch Inc.'s market capitalization is 7 million.

Calculate the required rate of return of Baruch Inc.

Related Book For answer-question

Intermediate Accounting Volume 1

ISBN: 978-1119496496

12th Canadian edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

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Posted Date: Mar 16, 2023 04:18 AM

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Financial analysts forecast Baruch Inc. to make 1 million USD for the next 10 years, starting next

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Expert Answer:

To calculate the required rate of return of Baruch Inc we can use the dividend discount model DDM wh... View the full answer

Intermediate Accounting Volume 1

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