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What is the intrinsic value of the stock

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Reference no: EM133074264

Company A has just paid its annual dividend of $3 per share. The dividend is expected to grow at a constant rate of 8% indefinitely

The beta of A is 1.5, the risk-free rate is 6% and the market risk is 11%

- What is the intrinsic value of the stock?

- What would be your estimate of intrinsic value if you believed that the stock was riskier, with a beta of 1.7?

- What is the stock price growth rate if the stock was sold at its intrinsic value?

Reference no: EM133074264

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