Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question 5
Jimenez Enterprises recently paid a dividend of $1.95. It currently expects to have a growth rate in the dividend of 8% for
the next two years followed by a growth rate of 4% in each year thereafter. If the firm's required return is 7%, what is the
stock's intrinsic value today?
A $49.77
B $57.55
$64.41
D $72.82
E $92.45
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Transcribed Image Text:Question 5 Jimenez Enterprises recently paid a dividend of $1.95. It currently expects to have a growth rate in the dividend of 8% for the next two years followed by a growth rate of 4% in each year thereafter. If the firm's required return is 7%, what is the stock's intrinsic value today? A $49.77 B $57.55 $64.41 D $72.82 E $92.45
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