Nixon inc currently pays 195 per share in dividends on its, Ask an Expert

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Nixon Inc. currently pays $1.95 per share in dividends on its common stock. Analysts differ over the long run growth potential for the firm. Some believe the dividends will grow at 6.00% forever, while conservative analysts believe the firm will grow at 4.00% long term. The required return to own the stock is estimated at 13.00%.

What intrinsic value is placed on the stock at the higher growth rate?

What intrinsic value is placed on the stock for the lower growth rate?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92726325

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