The firm believes that its stock price at December 31, 20X11, does not accurately reflect...
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Accounting
The firm believes that its stock price at December 31, 20X11, does not accurately reflect its intrinsic value on the same date. Assume that 20X11 dividends were $31,049.
Calculate the intrinsic value of stock at year-end 20X11. Explain the pros and cons of purchasing the treasury stock at year-end 20X11. What is the dividend and capital gains yield for 20X12? What is the dividend and capital gains yield for 20X14?
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