Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. deployment specialists pays a current (annual) div

Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 24%...

70.2K

Verified Solution

Question

Finance

Deployment Specialists pays a current (annual) dividend of $1and is expected to grow at 24% for two years and then at 6%thereafter. If the required return for Deployment Specialists is10.0%, what is the intrinsic value of its stock? (Do notround intermediate calculations. Round your answer to 2 decimalplaces.)

Intrinsic value

  

Answer & Explanation Solved by verified expert
4.5 Ratings (939 Votes)
Step1 Dividend for the next 2 years Dividend in Year 0 D0 100 per share Dividend in Year 1 D1 124 per share 100 x 124 Dividend in Year 2 D2 15376 per share 124 x 124 Step2 The Price    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Deployment Specialists pays a current (annual) dividend of $1and is expected to grow at 24% for two years and then at 6%thereafter. If the required return for Deployment Specialists is10.0%, what is the intrinsic value of its stock? (Do notround intermediate calculations. Round your answer to 2 decimalplaces.)Intrinsic value  

Other questions asked by students

Q

The following function is one to one Find the inverse algeb

Basic Math
Q

1. Describe one of the theories presented (such as the law of effect, conditioned reflexes, reinforcement,...

Psychology
Q

Which among the following factors represent the advantages of nuclear power I Low operating cost...

Biology
Q

am and Drew decide to mow lawns during their summer break with different companies am...

Basic Math
Q

4 4i 3 Simplify your answer including any radicals Use integers or fractions for any...

Algebra
Q

Find each for the data 10 16 22 29 33 31 18 26 15 Find...

Algebra
Q

Hogan's Lawn Care in Mount Olive, NC is a cash basis taxpayer. Hogan, the sole...

Accounting
Q

You work for Ang Tindahan Company. You were tasked to prepare the deposit slips, withdrawal...

Accounting
Q

Ben and Jerrys sells 3 times more ice cream cones ($2) than shakes ($9). If...

Accounting
Q

Hello Entertainment Limited is listed on the JSE securities exchange and owns the following intangible...

Accounting
Q

Required information The following information applies to the questions displayed below) BMX Company has one...

Accounting
Q

You observe the following annual returns for Spirit Pty Ltd. Determine the coefficient of variation...

Finance