GHL stock has a present intrinsic value equal to $500 per share, the company announced a dividend equal to $50 per share
Posted: Sun Jul 03, 2022 6:42 am
GHL stock has a present intrinsic value equalto $500 per share, thecompany announced a dividend equalto $50 per share for the comingyear. GHL expected its dividends to grow ata 6%.
I. Estimate GHL investors’ required rate of return.
II. What will happen to the required rate of return if thegrowth rate is higher. Justify your answer
I. Estimate GHL investors’ required rate of return.
II. What will happen to the required rate of return if thegrowth rate is higher. Justify your answer