Pro Build Inc. has had a net income of $16 million in its most recent year. Net income is expected to grow by 3% per year. The firm always pays out 30% of net income as dividends and has 4 million shares of common stock outstanding. The required return is 12%. Attempt 1/1 Part 1

What is the intrinsic value of the stock?

Answer rating: 100% (QA)

The discounted dividend model is used to determine the fair price of the stock by taking the use of ... View the full answer