Which of the valuations you calculated

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Problem: Consider the information reported in the following table for CBA. Scenario Growth Rate in Dividends (g) Required Return High Growth 5% 8% Low Growth 4% 8% If CBA is expected to pay a 2024 dividend of $4.80, calculate the value of CBA shares using the dividend discount model (DDM) under both growth scenarios. If the current CBA share price is $102.00, do CBA shares represent a good investment opportunity? Explain your answer. (Include enough working to show you understand the calculations.). CBA is a large mature bank that has a stable market share in the Australian banking industry. If the Australian economy is expected to grow at approximately 2-3% over the next few years, which of the valuations you calculated do you think is more realistic? Explain your answer.

Reference no: EM133664095

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