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Question of the Week - Equity
You are provided the following information about a stock:
• Current price: $36.78
• Current annual dividend: $1.70
• Expected dividend growth rate: 4.5% for the next 2 years, 1.6% thereafter
If the required rate of return on this stock is 8.5%, the intrinsic stock value according to the two-stage dividend discount model is closest to:
Question of the Week - Equity 11 votes