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Suppose an investor is considering the purchase of a share of a Corp. The stock is currently paying $3 in dividend. This dividend is expected to grow constantly at 10% per year (g =10%) for the foreseeable future. The investor thinks that the required return on this stock is 15%, given her assessment of FIN340’s risk. What is the intrinsic value of the company’s stock?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92849332

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