Suppose Pale Hose, Inc. has just paid a dividend of $1.80 per share. Sales and profits for Pale Hose are expected to grow at a rate of 8% per year. Its dividend is expected to grow by the same rate. If the required return is 14%, what is the intrinsic value of a share of Pale Hose?

Answer rating: 100% (QA)

1 The intrinsic value of a stock also known as the fair value or present value can be esti... View the full answer