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yexiu yexiu
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2 years ago
Analysts expect Virtucon to make payouts of $8.7643B at the end of this year. Assume that all payouts occur annually at the end of the year and that we are at the beginning of the year. Analysts forecast that Virtucon's payouts will grow at 3% in perpetuity. Virtucon stockholders require a return of 11%. Virtucon has 2.45B shares outstanding. Which of the following is the closest to the fair price for Virtucon's shares today?

▸ $45

▸ $46

▸ $47

▸ $48

▸ $49
Textbook 
Corporate Finance Online

Corporate Finance Online


Edition: 2nd
Authors:
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Hellish L.Hellish L.
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2 years ago
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