medium · Principles of Finance valuation
A stock just paid an annual dividend of D_0 = $3.20. Analysts expect the dividends to grow at a constant rate of 4.5% indefinitely.
If the required rate of return for this stock is 8.0%, what is its intrinsic value according to the Gordon Growth Model?
- 41.80
- 26.75
- 91.43
- 95.54
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