Question: V Shift command option - company recently paid a dividend of $1/ share. The dividend is expected to grow by 10% in year year 2,
V Shift command option - company recently paid a dividend of $1/ share. The dividend is expected to grow by 10% in year year 2, 7% in year 3, and 6% in year 4. After that, its dividend is expected to grow at 5% per year Torever. If ABX Company's cost of capital is 10%, what is the intrinsic value of ABX's share? If ABX's share currently trades at $18/ share, would you buy the share of ABX? Why
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