Medifast's current price is $157. Its current dividend is $6.34 a share. Its beta is 1.15 and

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Medifast's current price is $157. Its current dividend is $6.34 a share. Its beta is 1.15 and its growth rate is 11%. Find Medifast's intrinsic value and determine whether it is over or under valued.

Risk-free rate = 0.016 Market rate = 0.136

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Fundamentals of Managerial Economics

ISBN: 978-0324584837

9th edition

Authors: Mark Hirschey

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Posted Date: Mar 22, 2023 04:08 AM

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Medifast's current price is $157. Its current dividend is $6.34 a share. Its beta is 1.15 and

Question:

Expert Answer:

To calculate the intrinsic value of Medifast we can use the dividend discount model DDM which assume... View the full answer

Fundamentals of Managerial Economics

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