What is the fundamental value

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Question - Suppose in 2022 you estimated that company X's 2023, 2024, and 2025 dividend per share will be 0.360, 0.457, and 0.531, respectively. Beginning from 2026, X's dividend growth rate will be 16.1%. Using the two-stage dividend discount model (DDM), what is the fundamental value in year 2022? The discount rate for X's cash flows is 20%.

Reference no: EM132787287

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