Question: Let's assume Walmart is a variable growth stock with an expected annual growth rate in dividends of 8% in years 2 through 5 and a

Let's assume Walmart is a variable growth stock with an expected annual growth rate in dividends of 8% in years 2 through 5 and a constant annual growth rate of 3.5% after year 5. What is your valuation of Walmart's stock today using the variable growth dividend discount model? Would you recommend buying Walmart's stock today and why?

Stock Walmart

Current Price $98.00

Estimated Price 1 year from now $105.03

Annual Expected Dividend (D1) $2.12

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