Helps reduce failings of greater fools theory

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1. C Corps last dividend was $3.00 per share. The dividend growth rate is expected to be constant at 15% for 2 years, after which dividends are expected to grow at a rate of 9% forever. CCorps required rate of return is 13%. What is CCorps current stock price?

2. DCF analysis' benefits include all of the following EXCEPT: a) Helps reduce failings of greater fools theory. b) Create a framework for rigorous analysis and questioning. c) Requires analysis of inputs d) Always a better estimate of value.

Reference no: EM132008051

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