Question: Inputs Present Value Current stock Price $ 62.00 Risk Free 2.5% Beta 1.1 Expected Market Return 7.0% Dividend growth rate 6.0% Required Rate of Return
| Inputs | Present | ||||
| Value | |||||
| Current stock Price | $ 62.00 | ||||
| Risk Free | 2.5% | ||||
| Beta | 1.1 | ||||
| Expected Market Return | 7.0% | ||||
| Dividend growth rate | 6.0% | ||||
| Required Rate of Return | |||||
| PV | Dividend | ||||
| This Year's Dividend | This Year | $ 0.80 | Growth | ||
| Next Year | $ 0.92 | 15% | |||
| 2 | $ 1.06 | 15% | |||
| 3 | $ 1.22 | 15% | |||
| Future Stock Price | 3 | 6.0% | |||
| Intrinsic Value | Intrinsic Value |
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
