Calculate the stock intrinsic value according to information

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Problem 1: Calculate the stock's intrinsic value according to the information below. If the current market price for the stock is $60.00, might you recommend buying shares of the stock based on the intrinsic value you calculated?

a. Stockholder's required rate of return is 7.5%

b. The rate of growth in earnings and dividends in the first 4 years is 18%, the rate of growth in the next 2 years is 10%, and then 5% thereafter.

c. The last dividend paid by the company was $1.30

Reference no: EM132755114

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