Find the intrinsic value of the stock


Find the intrinsic value of the stock of company ABC using the following data:

risk free rate = 5%
market risk premium = 8%
Expected market return = risk free rate + market risk premium
beta = 0.9
ROE = 12.5%
dividend payout ratio = 0.22

Dividends for the next 4 years are expected to be .59, .67, .76, .85. Subsequent growth will be at the computed growth rate, g.

 

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Finance Basics: Find the intrinsic value of the stock
Reference No:- TGS027442

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