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A stock analyst wants to use a dividend pricing model to value Google stock. The analyst believes Google will pay its first dividend in exactly 15 years, and she is guessing that the dividend will be $10.00 per share at that time. The analyst assumes that dividends will grow by 5% per year going forward after year 15. The required return to hold Google is estimated to be 12% per year. Based on these assumptions, what is the intrinsic value of Google stock TODAY.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92270665

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