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Will pay to buy the shares and why

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Problem 1: As a CFO, you are planning to invest in ABC Limited which manufactures and sells cell phones. While using the Dividend Growth Model and Corporation Value Model, each share is worth $2.50 and $3.00 respectively. The current stock market price is however $5.00 per share. Will you pay $5.00 to buy their shares? Why?

Reference no: EM132774328

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