Problem

Helen Morgan, CFA, has been asked to use the DDM to determine the value of Sundanci, Inc...

Helen Morgan, CFA, has been asked to use the DDM to determine the value of Sundanci, Inc. Morgan anticipates that Sundanci’s earnings and dividends will grow at 32% for two years and 13% thereafter.

Calculate the current value of a share of Sundanci stock by using a two-stage dividend discount model and the data from Tables 13.11 and 13.12.

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Solutions For Problems in Chapter 13