Next yearrsquos annual dividend is expected to be 4 per


Next year’s annual Dividend is expected to be $4, per share.The long-term growth in dividends is expected to be 3%, indefinitely.The firm’s Beta is 0.95, the Equity Risk Premium is 7.5%, and the risk free rate for the expected duration of the investment is 2.83%. What is the intrinsic value of the stock, per share?

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Financial Management: Next yearrsquos annual dividend is expected to be 4 per
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