Polomi's common stock just paid a dividend of $1.19 per share. And the dividend is expected...
Polomi's common stock just paid a dividend of $1.19 per share. And the dividend is expected to grow at a rate of 4.80% every year. Investors require a rate of return of 10.40% on Polomi's stock.
a. Calculate the intrinsic value of Polomi's stock? (Round your answer to 2 decimal places.)
Intrinsic value = ?
b. What should be the price of Polomi's stock 1 year from now if market expect its current market price reflects its intrinsic value? (Round your answer to 4 decimal places.)
Expected price = ?
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Polomi's common stock just paid a dividend of $1.19 per share.
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