We expect Elvis's Blue Suede Co, a purveyor of fine footwear, to pay a dividend of 4.24 next year. If we expect this dividend to grow at a rate of 3%, and we require a return of 19%, how much would we be willing to pay for a share of stock in Elvis's Blue Suede Shoes?

Answer rating: 100% (QA)

We can use the Gordon Growth Model GGM to estimate the intrinsic value of a share of stock in ... View the full answer