What is victoria investment value for craig corp

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Reference no: EM131568881

Craig Corp. just paid dividends of $1.00/share. Analyst Victoria thinks that Craig Corp.'s dividends will grow by 5% for the next three years and then flatten out. She also notices that Craig Corp. is a heavy industries company and has a beta of 1.5. The general estimates for the economy indicate that the expected return from the market is about 8% and the yield on a Treasury bond is 1%. Using CAPM and the dividend discount model, what is Victoria's investment value for Craig Corp.?

Reference no: EM131568881

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