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What is the intrinsic value of the stock today

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Consider a stock that pays annual dividends. It just paid $7.50 dividends per share, and the next dividend will be paid in 1 year. The dividends are expected to remain constant at $7.50 per share for the next 10 years, after which the dividends are expected to decrease at a rate of 1% per year. The annual cost-of-capital is 15%. What is the intrinsic value of the stock today?

Reference no: EM133062262

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