Question

Schnus Corporation just paid a dividend of $5.75 per share,
and that dividend is expected to grow at 20 percent each year for
the next two years, and at constant rate of 8.50% per year
thereafter. The company’s beta is 1.50, the required return on the
market is 12.50%, and the risk-free rate is 2.40%. Calculate the
company’s intrinsic value.

thankyou !

Answer #1

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