The required rate of return on the stock is 11 what is the
Thames Inc. just paid out a dividend of $2.00 per share. Its dividend is expected to grow at a constant rate of 7% per year. The required rate of return on the stock is 11%. What is the intrinsic value of Thames stock?
a. $47.50 b. 50 c. 52 d. 53.50
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