Seinfeld Inc. just paid a dividend of $1.75 and projects supernormal growth of 15% for...
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Finance
Seinfeld Inc. just paid a dividend of $1.75 and projects supernormal growth of 15% for the next three years. Growth is then expected to slow down to a normal 5%. Similar stocks are earning investors a return of 10%
a) What is the intrinsic value of this stock?
b) If the stock is selling for $60 on the NYSE should you buy it? Why or why not?
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