3 4 5 Dividend today Historical and Expected growth rate Current Stock price What is the...
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3 4 5 Dividend today Historical and Expected growth rate Current Stock price What is the required retum on the stock? Dividend today Historical and Expected growth rate Required retum on the stock What is the price of the stock? $ 1.50 10% $35.00 $ 1.50 10% 16% Using the Gordon Growth model (constant growth model) Use Free Cash Flow as a substitute for dividends. What is the value of the firm is that firm produces $750k in Free Cash Flow? Use a constant growth rate of 5% and required retum of 15%. 3 4 5 Dividend today Historical and Expected growth rate Current Stock price What is the required retum on the stock? Dividend today Historical and Expected growth rate Required retum on the stock What is the price of the stock? $ 1.50 10% $35.00 $ 1.50 10% 16% Using the Gordon Growth model (constant growth model) Use Free Cash Flow as a substitute for dividends. What is the value of the firm is that firm produces $750k in Free Cash Flow? Use a constant growth rate of 5% and required retum of 15%.
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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