Seaside Toys currently earns $2.00 per share and currently pays $1.00 per share in dividends.It is expected to have a constant growth rate of 5 percent per year.The required rate of return is 15 percent.What is the intrinsic value of this stock?
A) $6.67
B) $7.00
C) $10.00
D) $10.50
Correct Answer:
Verified
Q11: All of the following are interchangeable terms
Q12: Discounted cash flow techniques used in valuing
Q13: The constant growth dividend model uses the:
A)historical
Q14: Relative valuation measures commonly used by market
Q15: Infinite growth is a problem with the
Q17: Analysts often use a _% rule in
Q18: Under the multiple growth model,at least ------
Q19: What is the estimated value of a
Q20: The zero-growth dividend model:
A)gives the highest value
Q21: It is recommended that investors interested in
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