The Jolly Scholar Brewing Company will pay a dividend of $2.50 next year.Industry analysts expect for the

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The Jolly Scholar Brewing Company will pay a dividend of $2.50 next year. Industry analysts expect for the Company to increase its dividend at an annual rate of 7.00% in the future.

You desire to earn a rate of return of 12.0% on an investment in this Company.

Use the Dividend Constant Growth Valuation Model to estimate the Inherent Value of this stock.

what is the impact on the Inherent Value if you decrease the target rate of return to 15.0%?

what is the impact on the Inherent Value if you increase the expected dividend growth rate to 9.0%?

Related Book For answer-question

Contemporary Engineering Economics

ISBN: 978-0136118480

5th edition

Authors: Chan S. Park

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Posted Date: Apr 22, 2024 01:44 AM

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The Jolly Scholar Brewing Company will pay a dividend of $2.50 next year.Industry analysts expect for the

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Contemporary Engineering Economics

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