What is the intrinsic value of abc corp stock

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You've forecasted that ABC Corp. will pay dividends of P2.50 in the first year, P3 in the second year, and P3.25 in the third year. You expect that at the end of the third year, the selling price of the company's stock will be P125 per share. The estimated cost of capital is 5%. The current stock price is P110 per share.

a. What is the intrinsic value of ABC Corp stock?

b. What is the status of ABC Corp stock in the market?

Reference no: EM132705473

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