Homework Answers
Using DDM model,
Stock Price = PV(Dividends) + PV(Horizon Value)
Stock Price = 3.20(1.19/1.21) + 3.20(1.19/1.21)2 + 14.87/(1.21)2
Stock Price = 3.147 + 3.095 + 10.156
Stock Price = $16.40
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