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asaini1254 asaini1254
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2 years ago
For the next three years MBA Inc. is expected to pay $1.50, $2.00 and $2.50 in dividends and after that dividends will grow at the rate of 4% in perpetuity.  The required rate of return is 12%. Assuming the first dividend will be paid in exactly one year, the intrinsic value of MBA shares is

▸ $25.37.

▸ $27.85.

▸ $28.96.

▸ $38.50.
Textbook 
Fundamentals of Investing

Fundamentals of Investing


Edition: 14th
Authors:
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bcyberbcyber
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2 years ago
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asaini1254 Author
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2 years ago
Thanks
Gorgio_De
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Thanks for your help!!
kc123
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2 hours ago
Helped a lot
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