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Suppose that a stock's current dividend is equal to $1.50. Also, suppose that the stock will grow at 4% for the first 3 years, then at 8% for 3 more years, and then at 5% thereafter. Also, assume that the opportunity cost rate of the stock (estimated via CAPM) is equal to 10%. What is the intrinsic value of the stock?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91945898

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