You are forecasting a stock to pay the following dividends: $4.50 , $3.75 , $4. The dividends will then begin declining

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

You are forecasting a stock to pay the following dividends: $4.50 , $3.75 , $4. The dividends will then begin declining

Post by answerhappygod »

You are forecasting a stock to pay the followingdividends:$4.50 , $3.75 , $4.
The dividends will then begin declining at a rate of 7.5% forthe foreseeable future. What is the intrinsic value of thisstock if the required return is 14%?
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply