WWW Servers just paid a dividend of D0 = $1.00.Analysts expect the company's dividend to grow by 30% this year,by 10% in Year 2,and at a constant rate of 5% in Year 3 and thereafter.The required return on WWW's stock is 9.00%.What is the best estimate of the stock's current intrinsic value?
A) $31.50
B) $32.31
C) $33.14
D) $33.99
Correct Answer:
Verified
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