What does james believe is the intrinsic value of stock

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Reference no: EM131995768

Medtrans is a profitable company that is not paying a dividend on its common stock. James Weber, an analyst for A. G. Edwards, believes that Medtrans will begin paying a $1.00 per share dividend in 2 years and that the dividend will increase 6% annually thereafter. James has estimated the required return for Medtrans common stock to be 13%. What does James believe is the intrinsic value of this stock?

Reference no: EM131995768

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