Galaxy Inc. paid a dividend of $5 this year. The dividends you expect to grow...
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Galaxy Inc. paid a dividend of $5 this year. The dividends you expect to grow at 5% a year forever. The risk free rate is 4% and you require a risk premium of 5%. What is the value of the stock based on the dividend discount model? If the price of the stock in the market is $120 a share, should you buy it and why?
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