Bergman Corp. has paid an annual dividend of $2.00 per share over the past seven years,...

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Bergman Corp. has paid an annual dividend of $2.00 per share over the past seven years, including the last payment this month

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Answer 1

Answer #1

Value of stock = Expected Annual Dividend/Required rate of return

= 2.10/12%

= $17.5

Hence, intrinsic value = $17.5

The price of stock with increase with a fall in interest rates

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Answer 2

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