Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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CSCO currently pays $1.88 in dividends. You think the company will be able to grow dividends at 9% a year forever. If your required return is 12.3%, Would you buy the stock at the current price of $52 a share? Group of answer choices Yes, because the intrinsic value is $62.1, higher than the current price. No, because the intrinsic value is $89.68. No, because the intrinsic value is $48.88, lower than the current price. No, because the intrinsic value is $62.1, higher than the current price.
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