I'm evaluating a stock for purchase. my estimation is that the firm will pay the following dividends
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I'm evaluating a stock for purchase. my estimation is that the firm will pay the following dividends in the coming years: year 1: $2.00 year 2: $2.50 and year 3: $3.00. After the 3rd year the dividend is expected to grow at a long term rate of 8%. Your required rate of return is 10%. What is the formulation to calculate the intrinsic value of this stock?
Related Book For
Foundations of Financial Management
ISBN: 978-1259194078
15th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
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