What is the intrinsic value of the stock today

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Alexa Corporation has a current stock price of $20 and is expected to pay a dividend of $1 in one year. Its expected stock price in one year is $22.

If the required rate of return is 16%, what is the intrinsic value of the stock today?

Given Alexa Corporation has a current stock price of $20, what is the expected return to hold its stock for one year? ______%

Reference no: EM132468202

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